DAMAC’s Bold Entry: Pioneering Luxury in Baghdad’s Real Estate Landscape
DAMAC Properties in Iraq is a turning point for the Middle Eastern luxury real estate sector. The Dubai-based developer has unveiled its DAMAC Hills Baghdad project, its first foray into Iraq’s property market. With this expansion DAMAC now leads real estate investment in Iraq which is expected to grow at over USD 1.1 billion a year.
The timing was perfect. Iraq has a housing deficit of more than three million units and more than 57% of the population is under 25. This demographic pressure and 2.5% annual urbanization create demand that outstrips supply. For luxury villas in Baghdad, this translates into an investment landscape where some properties have delivered 150% returns in just two years.
Unveiling Phase One: Baghdad - The Heart of DAMAC Hills
Three residential clusters on 6.2 million square metres are included in DAMAC Hills Baghdad Phase One launch. Just five minutes from Baghdad International Airport and ten minutes from the Green Zone, the development backs up to Abbas Ibn Firnas Square.
The three inaugural clusters are:
- Misk: It has traditional Iraqi architectural elements.
- Fayrouz: Blends contemporary design with regional aesthetic sensibilities.
- Lamar: Designed for modern family living with integrated green spaces.
Each cluster offers only four-and five-bedroom villas with private gardens, maids’ quarters and driver accommodation. The project is among Iraq’s largest private residential developments.
Blending Heritage and Modernity: Villa Designs and Amenities
The Baghdad luxury villas are an example of how DAMAC pays attention to Iraq’s architectural heritage while offering first class modern comforts. Design elements include traditional Iraqi arches, wide courtyards and natural materials mixed with modern finishes and smart home technologies.
Beyond the individual homes, the master-planned community offers all the bells and whistles of Baghdad living:
- Central parks with landscaped leisure areas and jogging tracks.
- Full service health club & fitness Centre.
- Gourmet restaurants & contemporary cafes.
- Dedicated playgrounds & family recreation areas.
- Advanced water treatment and distribution systems.
- On site power substation for uninterrupted electricity.
- Solar water heating systems.
- CCTV and perimeter monitoring 24/7 security
Investment Potential: Why Iraq’s Market is Ripe for Growth
Real estate investment in Iraq offers attractive opportunities based on solid market fundamentals. The residential real estate segment alone is expected to hit USD 922.74 billion by 2025 with steady growth through 2028. Baghdad properties in premium neighborhoods average rental yields of 6% to 10% - mostly for furnished apartments and in-town developments.
Many factors make Iraq’s market attractive to 2025 investors. The entry costs are still low compared to regional rivals such as Dubai, Amman or Riyadh and growth is still high. Iraqi government announced USD 450 billion in investment opportunities in different sectors. Also, progressive investment laws allow foreigners to own residential development projects.
DAMAC Properties in Iraq is in line with Baghdad’s Comprehensive City Development Plan 2030 and the National Investment Commission initiatives. This coordination between private development and public infrastructure planning takes away regulatory risk and creates long term appreciation of value.
Nearby Green Zone, Al-Mansour district and Baghdad’s top hotels will keep DAMAC Hills Baghdad in demand from end-users and investors looking for gains in Iraq’s real estate market. With DAMAC delivering more than 49,000 homes worldwide since 2002, the company is well positioned to service Iraq’s luxury residential market.
