Kabul experiences real estate boom: Peace drives prices up

In the crisis-stricken capital of Kabul, a remarkable upswing in the luxury real estate market is emerging. Omidullah, a local real estate agent, is offering a magnificent villa with nine bedrooms and bathrooms in an opulent white-gold style for $450,000. A proud price in a country where the majority of the population relies on humanitarian aid and financial products like mortgages barely exist. Nevertheless, purchase offers are piling up. The return of Afghans living abroad is significantly contributing to the price increase. As the security situation has improved, many are returning with capital, including those being repatriated from Iran and Pakistan. The relatively peaceful state since the withdrawal of foreign troops and the takeover by the Taliban has increased the willingness to invest. Mortgages are rare, as banks lack the deposit volume for loans. Instead, cash payments are often made, or the 'Geerawi system' is used, where the buyer pays the landlord a fixed amount for the use of the house. Ghulam Mohammed Haqdoost, another real estate expert, reports on a thriving market. The transformation of the country under Taliban rule brings clear advantages. Corruption and the need to deal with warlords or bribable officials have decreased. The stricter adherence to legal and commercial regulations ensures easier property transactions. Real estate prices have increased by almost 40%, and around 400 properties have been sold in the last three years. Haqdoost is benefiting from the boom, employing over 200 administrative staff, including specifically women for female clients, and around 1,000 employees in his construction company.