^{The U.S. Embassy in Baghdad}

Despite the current political upheaval in Iraq, one area of the economy is already starting to recover – the Baghdad housing market. House prices fell through the floor last year as bombings and kidnappings increased. But as some stability begins to emerge from the rubble, the housing market has poked it’s head up from behind a parapet and said, “open for business.”

Many displaced Iraqis are returning home as the violence in the capital is beginning to decrease. But homes in safe areas are in short supply, forcing prices to rise dramatically. Unlike a typical London suburb where the house prices may be dependent on the closest decent school, which political faction controls the neighborhood has a lot to do with the price. People who sold at bargain prices and have now returned are finding that prices for the same housing are now out of their reach. Most Iraqis part cash for their properties and, as yet there is no organized mortgage system available.

One such unfortunate, Jassem, sold his five bedroom home in 2005 for $75,000 and is finding the same property priced at $165,000 now.

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