Erbil – Similar towers, buildings and houses to those being erected in Erbil, the capital of Iraqi Kurdistan, may be seen throughout the region. Due to the shape of the skeletons and size of the land around the works, it is possible to see that the new constructions have modern and spacey architecture. From these skeletons, five-star hotels, groups of houses, luxury condominiums, commercial towers and shopping centres will arise.
This change in scenery is not visible just in Erbil, but throughout Kurdistan, and began in 2003, after the war in Iraq. Businessmen in the region said that Kurdistan needs 300,000 houses to supply the population, of around five million people. Currently, 50,000 houses are being built.
According to the administrative deputy director of Iraqi group Galala, Ali J. Al-Assadi, in 2006, the government of Kurdistan authorized the private sector to start building housing projects and to sell directly to the population. One of the 16 companies in Galala group, which has been in the market since 1968, Eskan, in real estate and investment, has its largest real estate project in Erbil Ashti City (City of Peace), in development.
The company is building 5,000 houses in Erbil, ranging from 100 to 150 square meters, 200 to 250 square meters and 400 to 1,000 square meters. The smaller houses start at US$ 50,000, the medium ones at US$ 180,000 and the larger ones at US$ 300,000. "Erbil is currently a great market," said Assadi.
Of the 5,000 houses of Ashti City, which should be complete by June 2011, 2,000 have already been sold. The smaller ones were financed in up to 10 years with no interest and the others with interest of up to 8% a year.
Apart from housing complexes, which are the majority, as the Iraqi Kurds prefer to live in houses, there are also apartment complexes. One of the newest is Naz City, with apartments following the same standards, ranging from two to four bedrooms, occupied mainly by foreigners. The price, on average, is US$ 250,000.
This construction sector boom in Kurdsitan has attracted several foreign companies, mainly from Turkey, Iran and Lebanon, among other countries of the Middle East and Europe. Multinationals in the hotel sector have already got here, like Rotana, from Lebanon, which should inaugurate its first five-star hotel in Erbil in coming months. Apart from that one, another two luxury hotels are being built in the city by other hotel chains.
Not just five-star hotels are being built in Erbil. Dozens of smaller hotels have been rising each year. Hotel Al Wael Palace, for example, four stars, was inaugurated four months ago. With a total of 18 rooms, hotel-owner Sharif Hasan Aziz says it is always full.
While ANBA spoke to Aziz, a group of four friends came in to reserve rooms for the last week of the month. The owner quickly informed them that he had no rooms available. "Most of our guests are from Iraq," he said. However, at times of international parties, the hotel receives guests from several countries, like India, Turkey, Canada, England, Lebanon, Kuwait and Russia.
In the neighbourhood surrounding Al Wael Palace, Ainkawa, there are three other new hotels and, according to Aziz, in coming months, another one should be inaugurated. Since 2003, investment in infrastructure has also grown. New highways, broad paved avenues and tunnels were built. With the development of the city, parks, shopping centres and hypermarkets also arose. The first Carrefour in the region is about to be opened.
According to Aziz, shopping centres started being inaugurated in recent years. Erbil already has four, with the most recent, Majidi Mall, the largest in the city, having been inaugurated one year ago. The multi brand shops and the hypermarket, three storeys tall, attract men, children and women, Christian and Muslim, wearing veils or not.
*Translated by Mark Ament
