The Impact of Economic and Social Characteristics on the Demand for Residential Apartments in the City of Erbil: An Econometric Study for 2025

Abstract

This study aims to identify the economic and social characteristics of a sample of families residing in residential apartments in Erbil, Iraq, for the year 2025. The study used the economic and social characteristics of apartment residents as independent variables, with demand as the dependent variable. The study adopted an inductive approach by distributing a questionnaire to a sample of 460 heads of households living in residential apartments. The Ordinary Least Squares (OLS) model was used to analyze cross-sectional data. One of the most significant findings of the study is the statistical significance of the variables examined, and that the decision to own an apartment is not merely a financial decision, but rather the result of the interaction of a wide range of economic and social characteristics. The results of the econometric model also indicate that financial factors play the most prominent role in influencing the demand for residential apartments in the city of Erbil.As for the most important recommendations of the study, they include the necessity of developing installment and mortgage financing programs by encouraging banks to provide flexible and affordable payment plans that are compatible with households’ purchasing power, thereby increasing opportunities for home ownership. In addition, it is important to align apartment prices with income levels by regulating prices within acceptable limits through fair pricing policies or by providing government support or incentives to developers to supply housing units at affordable prices.