Investment Property in Baghdad

Investment Real Estate in Baghdad

Investment Property in Baghdad
Investment Property in Baghdad

Baghdad property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Baghdad.

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Baghdad (; Arabic: بَغْدَاد [baɣˈdaːd] (listen), Kurdish: بەغدا) is the capital of Iraq and the second-largest city in the Arab world after Cairo. It is located on the Tigris near the ruins of the ancient city of Babylon and the Sassanid Persian capital of Ctesiphon. In 762 CE, Baghdad was chosen as the capital of the Abbasid Caliphate, and became its most notable major development project. Within a short time, the city evolved into a significant cultural, commercial, and intellectual center of the Muslim world. This, in addition to housing several key academic institutions, including the House of Wisdom, as well as a multiethnic and multi-religious environment, garnered it a worldwide reputation as the “Center of Learning”.

Baghdad was the largest city in the world for much of the Abbasid era during the Islamic Golden Age, peaking at a population of more than a million. The city was largely destroyed at the hands of the Mongol Empire in 1258, resulting in a decline that would linger through many centuries due to frequent plagues and multiple successive empires. With the recognition of Iraq as an independent state (formerly the British Mandate of Mesopotamia) in 1932, Baghdad gradually regained some of its former prominence as a significant center of Arab culture, with a population variously estimated at 6 or over 7 million.[note 1] Compared to its large population, it has a small area at just 673 square kilometers (260 sq mi).

The city has faced severe infrastructural damage due to the Iraq War, which began with the United States-led invasion of Iraq in 2003 and lasted until 2011, and the subsequent insurgency and renewed war that lasted until 2017, resulting in a substantial loss of cultural heritage and historical artifacts. During this period, Baghdad had one of the highest rates of terrorist attacks in the world. However, terrorist attacks are rare and have been declining since the territorial defeat of the Islamic State militant group in Iraq in 2017.

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The financial stability of Baghdad has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Baghdad

 

Renting out your Baghdad buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Baghdadare – preparation is key:

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Baghdad and be prepared to change your initial outlook.
  • Thoroughly research the Baghdad location with a special emphasis on fringe areas outside the main Baghdad metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Baghdad.
  • Ensure that your target investment property in Baghdad appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

Flipping Investment Property in Baghdad

Flipping property in Baghdad

 

Flipping property is when we advise clients to buy a Baghdad property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Baghdad market has a time to react to the renovation.

 

The Flipping Strategy in Baghdad

 

Investment property flipping in Baghdad is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Baghdad real estate investments are sometimes referred to by professionals as ‘distressed’ Baghdad real estate.

 

What is distressed Baghdad property:

 

  • Baghdad property in need of renovation
  • Baghdad real estate with a change of puropose and use
  • Oversold Baghdad property
  • Bank repossessions in Baghdad

 

Put simply, long term investors in Baghdad purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Baghdad investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Baghdad property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Baghdad use a minimum profit value of 22% when looking at potential Baghdad projects. The reason for this is because there are lots that can go wrong in Baghdad property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Property Secured Investments is a Private Equity fund that invests in Baghdad and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

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