Sadeq, nonetheless, affirms that the market has been revived once again due to news about improved relations between Erbil and Baghdad. Sadeq expects an economic boom in the near future. “Earlier, properties were put on the market, but no one wanted to buy. Currently we see activity and signs foretelling an improvement in the market.”
Sadeq attributes the improvement to the detente between Erbil and Baghdad and the decision made by both parties to revive their former, amicable relationship.
A significant number of middle-income citizens in the Kurdistan region invested most of their money in the real estate market, which witnessed skyrocketing growth and a rise in prices, encouraging many others to follow suit.
Karim Ali, the owner of a children’s clothing store and a real estate trader, stated that he has recently lost his trust in the market as prices have slumped in general and in the real estate market in particular.
In an interview with Al-Monitor, Ali added, “Now, we feel as though market activity has started to pick up again.”
Idriss Ramadan, an economic analyst and academic, points out that the way the economic sector in the Iraqi Kurdistan region is affected by political crises implies that the political class is not granting other parties complete power, either on the political or economic level, which subsequently allows [politics] to impact the Kurdistan region and the other provinces.
Ramadan reiterates that economic decisions are set within a political framework and vice versa, because fruitful economic decisions imply that successful political decisions were made.
Ramadan added, “Investment does not prosper in areas rife with uncertainty and instability, whether economic or political. This explains the market’s downturn, particularly that of the real estate market.”