Pilgrims Fuel Najaf Property Boom
Shia visitors to holy city pushing up real estate prices.
Pilgrims Fuel Najaf Property Boom
Shia visitors to holy city pushing up real estate prices.
Property prices in Najaf are being driven through the roof by the Shia visitors who have flocked to its holy sites since the invasion of Iraq by Coalition forces.
Home to the shrine of Imam Ali, a cousin of the prophet Mohammed and a revered figure in Shia Islam, Najaf is considered a top pilgrimage site by members of the denomination.
These include millions living across the border in Iran, who were unable to visit during the reign of Saddam Hussein.
The fall of his regime and accompanying thaw in relations between the two countries has brought with it an influx of pilgrims. And there are plans to spend 20 million US dollars on a new international airport near Najaf, with the help of a low-interest loan from Iran.
At the same time, local real estate agents and entrepreneurs say they are doing a roaring trade.
“Those experienced in religious tourism have started to buy land and buildings in order to turn them into hotels and tourist villages,” said Hussein Abdullah, who owns a real estate agency. “They expect [that in the future] Iraq will be the focal point in the world.”
Radha Mahdi, a merchant who left Iraq during Saddam’s reign and now lives in Iran, has bought four homes and two plots of land close to the Imam Ali shrine for himself and his relatives.
“We miss our birthplace,” he said. “After a year, we will come back home and settle in Najaf, and we will build hotels and commercial stores here.”
In particular, customers are prepared to pay a premium for grave-space in the area around the Imam Ali shrine, home to one of the biggest cemeteries in the world. It is said that any Muslim buried near the site will go to paradise.
In the past, a 30-square-metres plot of land suitable for graves used to cost anywhere between 34 and 68 dollars. Nowadays, such plots can fetch a hundred times as much.
“People are paying more to be close to Imam Ali’s shrine as families believe that such places are very holy,” said real estate broker Abdul Hassan Khalaf.
Abdullah added that the climate in Najaf is currently such that even people who usually make their money trading in goods such as electric appliances, garments and foodstuffs are getting involved in the property business.
Ali Abbas is one such person. He turned to lucrative property deals after giving up his old job selling flour because of the poor security situation.
“I make very good money and the prices keep rising,” he said. In one deal, Abbas bought several pieces of land totalling 200 square metres for around 4,800 dollars and sold it three months later for nearly three times as much.
“I know an Iraqi person who has nothing,” he added, “but he buys land and houses for an Iranian person and he takes a small commission for each deal.”
Talib Hussein also acts as an agent for people from Iran and other Gulf states wishing to buy land or homes in Iraq.
“I know that Iraq will recover from terrorism,” he said, confident that such an improvement in the overall situation will mean better business for him.
For those Najaf residents who are unable to take advantage of the investment opportunities, however, the property boom is far from welcome.
Even though Majidah Ali’s salary as a teacher has risen from two to 240 dollars a month since the invasion by Coalition forces, soaring costs mean she still can’t afford to buy property.
“I would have to save my salary for 20 years before I could buy a small house,” she said.
She added that the government ought to build cheap accommodation for those with low incomes.
Haider al-Moosawi is an IWPR trainee.
