Afghanistan’s property market: chaos and uncertainty
Afghanistan, torn apart by domestic warfare for decades, is still home to almost 30 million people. More than
The U.S. government has warned travellers wishing to visit Afghanistan about landmines on the roads and the possibility of being robbed or kidnapped anywhere outside Kabul. Afghanistan is still one of the largest drug producers in the world, and is extremely poor in terms of quality of life and ease of doing business (ranked 183 of 190 by the World Bank in its Doing Business Report), but what does
Land disputes
One of the main characteristics of the local market is its chaotic nature. Afghanistan does not have any land registry system, and, according to the U.S. International Trade Administration, about 80% of transactions are closed informally without any documents to prove
This is why the same land plot is often owned by several proprietors, while the local courts are unable to resolve such litigations effectively. In general, the market is regulated loosely, with controversial and incomplete laws, and property lawyers who lack the necessary skills.
Having observed business conditions in five Afghan provinces — Kābul, Balkh, Herat, Nangarhār and Kandahar — the World Bank has calculated that property registration in the capital takes an average of 8 months and costs about 5% of the property price.
Illegal construction
According to Afghanistan Independent Land Authority (ARAZI) CEO Jawad Peikar,
In 2016, the authorities attempted to address illegal construction issue for the first time. According to Reuters, ARAZI launched a pilot project to register properties constructed illegally in Kabul before 2001. Authorities plan on rolling out the initiative in other cities if the pilot proves effective.
Demand for cheap residential property
According to the International Monetary Fund, foreign aid amounted to 97%
However, this does not mean a total absence of demand today. According to official data, from 2004 to 2017,
According to Numbeo, prices per square metre in Afghanistan range from $300 to $1,500, while rental rates range from $50 to $300 per month
Residential property prices in Afghanistan ($)
City | Purchase price, $/m² |
|
---|---|---|
Herat | 300 – 1,000 | 30–250 |
Kabul | 400 – 980 |
75–300 |
200 – 1,500 | 50–200 |
What prospects are there
Yulia Kozhevnikova, Tranio
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