Iraq is a market with real housing demand and unusually high risk. City-centre prices average about $1,202 per m² (2023) and the gross yield is 6.4% (2024), but GDP fell 2.2% (2025) and foreign buyers face tight legal limits. This overview sets out what the Iraq property market data does and does not tell investors considering property for sale in Iraq.
What prices look like
The indicator set shows $1,202 per m² in city centres and $647 per m² outside them (both 2023). Average monthly net salary is about $628 (2023), and the price-to-income ratio of 8.0 (2024) is low, which sounds reassuring but reflects a small and oil-linked salary base, with large gaps between public-sector and private incomes.
Baghdad, Erbil and Basra are the main markets, and each behaves differently. Erbil and the Kurdistan Region have their own property regime and a separate pool of developers and buyers. Compare listings at cheap properties in Iraq.
| Indicator | Value | Year |
|---|---|---|
| Price per m², city centre | $1,202 | 2023 |
| Price per m², outside centre | $647 | 2023 |
| Price-to-income ratio | 8.0 | 2024 |
| Gross rental yield, city centre | 6.4% | 2024 |
| Price-to-rent ratio | 15.6 | 2024 |
| 1-bed rent, city centre | $384 | 2023 |
Yields and financing
A 6.4% gross yield (2024) and a one-bedroom rent of about $384 a month (2023) look attractive. But rental collection, tenancy enforcement and property damage are material risks, and demand can shift fast with security events.
Mortgage lending is limited. The 20-year mortgage rate in the dataset is 8.8% (2020) and the lending rate 12.3% (2015). Both are dated, so treat them as indicative at best. Most purchases are cash. The Iraq financing guide explains why.
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Economy and risk
GDP is about $254 billion, but it contracted 2.2% (2025). Inflation is low at 0.3% (2025), unemployment is high at 15.5% (2025) and the population of about 47 million is growing 2.1% a year. The economy relies heavily on oil, so budgets and salaries track crude prices, and public-sector hiring is the main source of stable income.
Corporate tax is 15% (2026). Governance, security, sanctions exposure and banking restrictions make international payments difficult. Corruption perception data is not included in our set for Iraq, and independent assessments are generally poor.
Iraq has housing demand and attractive headline yields, but with security, title and payment risks, it is a market for people with deep local relationships.
Legal and practical limits
Foreign ownership is heavily restricted and varies between federal Iraq and the Kurdistan Region. In many cases foreigners can lease or hold property via investment-law licences but not buy outright. Titles can be complicated by war-time documentation gaps and competing claims.
- Use an Iraqi lawyer registered locally, not an intermediary.
- Check government travel advice and your insurer's position.
- Confirm how funds can be transferred in and out.
See our Iraq buying guide.
Outlook
Population growth and reconstruction create demand, but unstable politics and a single-commodity economy keep risk high. We do not recommend Iraq to first-time overseas buyers. If you have family or business links, use the valuation tool, and contact us for guidance on due diligence.
Last updated 8 October 2026