Cost Of Living in Baghdad 2024
Average monthly spending for singles, couples, students, and families in Baghdad
Whether you're living in Baghdad or planning to move there, it is very important to know the cost of living and the prices of things. Here we list the average spending for the four main population groups.
Average Monthly Expenditure1.2M IQD
per month$90091,000 IQD $69
$9,000 12M IQD
Single820,000 IQD
per month$620270,000 IQD $210
$4,200 5.4M IQD
Couple1.4M IQD
per month$1,000450,000 IQD $350
$5,500 7.3M IQD
Family1.8M IQD
per month$1,400640,000 IQD $490
$7,600 10M IQD
Student540,000 IQD
per month$410220,000 IQD $160
$740 970,000 IQD
The figures displayed here are inclusive of everything: housing, travel, groceries, healthcare, etc.
Singles
The average monthly expense for a single person living in Baghdad is 820,000 IQD. Expenses can range from 270,000 IQD at the minimum level to 5.4M IQD at the highest end.
Couples
The average monthly spending of couples in Baghdad is 1.4M IQD. Expenditure can range from 450,000 IQD to 7.3M IQD per month.
Families
The average cost of living for families in Baghdad is 1.8M IQD per month. Families spend anywhere from 640,000 IQD to 10M IQD.
Students
The average monthly expenditure for students in Baghdad is 540,000 IQD. Students spend from 220,000 IQD to 970,000 IQD per month.
Spending behavior can change drastically from one person to another. It is best to consider the minimum, average, and maximum spending together.
Prices and cost of goods and services in Baghdad
Dining, food, and beverages costs
Large bottle of water
Fast food combo meal | 1,100 IQD | 2,200 IQD | 3,600 IQD |
Restaurant meal for one | 3,800 IQD | 5,700 IQD | 11,000 IQD |
Fine dining meal for one | 7,600 IQD | 11,000 IQD | 46,000 IQD |
Soda or Soft Drink
Cappuccino or latte | 910 IQD | 1,500 IQD | 2,200 IQD |
Grocery and market costs
Milk large bottle | 730 IQD | 880 IQD | 1,100 IQD |
Loaf of bread
12 eggs | 550 IQD | 730 IQD | 1,100 IQD |
Fresh whole chicken | 1,200 IQD | 1,600 IQD | 2,300 IQD |
Beef 1 kg or 1 lb | 1,500 IQD | 2,200 IQD | 4,400 IQD |
Rice 1 kg or 1 lb | 590 IQD | 800 IQD | 1,100 IQD |
Tomato 1 kg or 1 lb
Apples 1 kg or 1 lb Commute, travel, and transportation costs
20 minutes taxi ride | 960 IQD | 1,100 IQD | 2,300 IQD |
Average car full tank | 5,500 IQD | 7,300 IQD | 15,000 IQD |
Average car 1-day rental | 6,000 IQD | 8,000 IQD | 12,000 IQD |
Average car price | 2.7M IQD | 5.5M IQD | 7.3M IQD |
Bus ticket one way
Car Service | 8,000 IQD | 12,000 IQD | 24,000 IQD |
Utility cost (monthly)
Utility Bill - Individual | 16,000 IQD | 49,000 IQD | 330,000 IQD |
Utility Bill - Couple | 23,000 IQD | 68,000 IQD | 360,000 IQD |
Utility Bill - Family | 19,000 IQD | 54,000 IQD | 300,000 IQD |
Internet and cable | 5,500 IQD | 11,000 IQD | 15,000 IQD |
Mobile phone charges | 4,400 IQD | 7,300 IQD | 22,000 IQD |
Leisure and activities costs
Movie ticket | 2,700 IQD | 3,600 IQD | 5,500 IQD |
One month gym membership | 9,600 IQD | 12,000 IQD | 24,000 IQD |
Cloths and accessories costs
Pair of jeans or pants | 7,100 IQD | 10,000 IQD | 15,000 IQD |
Woman dress | 6,700 IQD | 9,200 IQD | 30,000 IQD |
Woman shoes | 6,300 IQD | 8,600 IQD | 20,000 IQD |
Men's shoes | 5,500 IQD | 6,700 IQD | 13,000 IQD |
Men suit | 6,000 IQD | 7,500 IQD | 40,000 IQD |
Regular t-shirt | 3,000 IQD | 4,000 IQD | 12,000 IQD |
Housing costs / monthly rent
Studio apartment | 100,000 IQD | 150,000 IQD | 400,000 IQD |
1-bedroom apartment | 150,000 IQD | 240,000 IQD | 600,000 IQD |
2-bedroom apartment | 200,000 IQD | 300,000 IQD | 800,000 IQD |
Housing costs / Buying
Studio apartment
1-bedroom apartment
2-bedroom apartment | 40M IQD | 120M IQD | 240M IQD |
Furniture Costs
King Size Bed | 110,000 IQD | 140,000 IQD | 180,000 IQD |
Double Bed | 73,000 IQD | 110,000 IQD | 140,000 IQD |
Single Bed | 64,000 IQD | 84,000 IQD | 110,000 IQD |
Living Room | 120,000 IQD | 160,000 IQD | 550,000 IQD |
Dining Table | 55,000 IQD | 73,000 IQD | 140,000 IQD |
Sofa or Couch | 73,000 IQD | 99,000 IQD | 220,000 IQD |
Electronics and House Appliance Costs
TV Set | 73,000 IQD | 110,000 IQD | 220,000 IQD |
Fridge or Freezer | 64,000 IQD | 99,000 IQD | 140,000 IQD |
Washing Machine | 84,000 IQD | 120,000 IQD | 220,000 IQD |
Stove or Cooker | 78,000 IQD | 99,000 IQD | 140,000 IQD |
Mobile Phone | 91,000 IQD | 110,000 IQD | 160,000 IQD |
Laptop or Computer | 99,000 IQD | 120,000 IQD | 220,000 IQD |
Expenditure to Income Ratio in Baghdad
One of the most definite ways to determine how affordable a place is measuring the ratio of expenses to salary. A high expense-to-income to ratio indicates a high cost-of-living index while a low expenditure-to-salary ratio means the place is affordable to live in.
Spending to Income Ratio
99%
91% to 110%
( expenditure / income ) x 100
Expense to income distribution levels
| Spending To Income Ratio | % People |
|---|
| < 50% | 5% |
| 50% - 60% | 10% |
| 60% - 70% | 16% |
| 70% - 80% | 25% |
| 80% - 90% | 19% |
| 90% - 100% | 10% |
| 100% - 110% | 6% |
| 110% - 120% | 4% |
| 120% - 130% | 3% |
| 130% - 140% | 2% |
| > 140% | 2% |
Interpretation and Analysis
The average spending-to-salary ratio in Baghdad is 99%
This means that on average, people spend around 99% of their income for living.
According to the distribution table, 16% of the population spend approximately 60% to 70% of their income every month.
How can spending be more than income?
A value higher than 100% means that the expenditure of those people is higher than their income. They are spending more than what they earn. This is possible in two scenarios. They are either borrowing from their savings to survive or they are borrowing from other sources (relatives, friends, banks, etc.). More about this in the debt section.
Individual
89%
Spending-Income-Ratio
82%
98%
Couple
94%
Spending-Income-Ratio
86%
100%
Family
100%
Spending-Income-Ratio
95%
110%
How do people spend their money in Baghdad?
We asked thousands of people about their spending habits and expenditure breaks. Below are their answers.
The percentage figures in this section are percentages of total spending not income. If you would like to see the percentage of expenses as related to income or salary, see other sections.
Housing Expenditure24%
24% of total expenses on average (13% to 32%)
| LOW | $21 27,000 IQD |
| AVERAGE | $270 350,000 IQD |
| HIGH | $2,700 3.5M IQD |
| Per Month |
People living in Baghdad typically spend from 13% to 32% of their total monthly expenditure on housing with 24% being the average. The average spend on housing is 350,000 IQD with expenditure ranging from 27,000 IQD to 3.5M IQD. This cost mainly goes for rent but it also includes other accommodation-related expenses. Housing costs are highest for families and lowest for students as expected.
Utilities, Electricity, Water7%
7% of total expenses on average (4% to 11%)
| LOW | $3.5 4,500 IQD |
| AVERAGE | $45 59,000 IQD |
| HIGH | $450 590,000 IQD |
| Per Month |
Utility expenditure like electricity, water, and gas in Baghdad ranges from 4% to 11% of total expenses with 7% being the average. The average monthly cost of utilities is 59,000 IQD with 4,500 IQD and 590,000 IQD being the upper and lower limits.
Transport, Fuel, Commute7%
7% of total expenses on average (3% to 11%)
| LOW | $6.9 9,100 IQD |
| AVERAGE | $90 120,000 IQD |
| HIGH | $900 1.2M IQD |
| Per Month |
Fuel consumption and cost of transport depend heavily on whether you live near your work or school, but roughly speaking you would expect to spend from 9,100 IQD to 1.2M IQD on commuting with 120,000 IQD being the norm for most people in one month. This means that money spent on transport constitutes about 7% of total spending on average but can go as low as 3% or as high as 11%.
Food and Groceries Cost28%
28% of total expenses on average (20% to 34%)
| LOW | $17 23,000 IQD |
| AVERAGE | $230 300,000 IQD |
| HIGH | $2,300 3M IQD |
| Per Month |
The average outlay on groceries in a month in Baghdad is 300,000 IQD. The cost of groceries can range between 23,000 IQD to 3M IQD. People spend on average about 28% on food and groceries with upper and lower bounds of 20% and 34% respectively.
Healthcare and Medical Services10%
10% of total expenses on average (5% to 13%)
| LOW | $4.9 6,400 IQD |
| AVERAGE | $63 83,000 IQD |
| HIGH | $630 830,000 IQD |
| Per Month |
People in Baghdad allocate 5% to 13% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending is around 10%. The range of medical expenses range from 6,400 IQD to 830,000 IQD with 83,000 IQD being the norm.
Leisure and Shopping5%
5% of total expenses on average (2% to 9%)
| LOW | $2.8 3,600 IQD |
| AVERAGE | $36 47,000 IQD |
| HIGH | $360 470,000 IQD |
| Per Month |
This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 3,600 IQD to 470,000 IQD with 47,000 IQD being the average. Speaking of percentages, that equates to 2% to 9% of total expenses with an average of 5% for most residents.
Education and Schooling5%
5% of total expenses on average (3% to 11%)
| LOW | $4.2 5,400 IQD |
| AVERAGE | $54 71,000 IQD |
| HIGH | $540 710,000 IQD |
| Per Month |
Spending on education can vary drastically between different people. While working singles can spend 0% on education, families and students' expenditure can reach up to 22%. On average, education constitutes 5% of the monthly expenditure with 3% and 11% being the lower and upper bounds respectively. The average reported education cost is 71,000 IQD per month with 5,400 IQD being the minimum spent amount and 710,000 IQD being the maximum.
Other Expenses13%
13% of total expenses on average (8% to 20%)
| LOW | $9 12,000 IQD |
| AVERAGE | $120 150,000 IQD |
| HIGH | $1,200 1.5M IQD |
| Per Month |
How much money can you save in Baghdad every month?
We asked thousands of people what percentage of their income can they save in a month. Below are the answers.
What percentage of people in Baghdad manage to save money from their income every month?
Almost 68% of the surveyed people in Baghdad said that they can save some money at the end of each month while 32% said that aren't saving anything.
Percentage of people saving money by population group in Baghdad
| Group | Savers | Non Savers |
|---|
| Singles | 69% | 31% |
| Couples | 63% | 37% |
| Families | 58% | 42% |
Savings-to-Income Ratio
The savings-to-income ratio is measured as the percentage of income that people save over a specific period and it is simply calculated by dividing the saved money by total income and then multiplying the result by 100. (Savings / Income) x 100.
Saving to Income Ratio
Average Monthly Saved Amount
29,000 IQD
$22 | 380,000 IQD
$290 | 3.8M IQD
$2,900 |
For most people, 7.9% to 31% of their monthly income is what they can allocate to their savings, with 15% being the average. The amount of money that people can save is approximately 380,000 IQD on average with savings ranging from 29,000 IQD to 3.8M IQD.
69% of surveyed singles reported some of their income going to savings while 63% of couples said the same. 58% of families confirmed their ability to save money.
How much money do people actually save in Baghdad?
The amount of money that people can afford to save depends hugely on their income. It is better to focus on the percentage when trying to understand saving patterns.
Singles
Saving to Income Ratio
Average Monthly Saved Amount
88,000 IQD
$67 | 260,000 IQD
$200 | 1.8M IQD
$1,300 |
Savings to income distribution levels for singles
| Saving To Income Ratio | % Singles |
|---|
| 0% - 10% | 31% |
| 10% - 20% | 24% |
| 20% - 30% | 16% |
| 30% - 40% | 14% |
| 40% - 50% | 11% |
| > 50% | 4% |
Interpretation and Analysis
Singles who can afford to save reported that they allocate from 11% to 33% of their monthly income to savings, with 19% being the average for most singles. The average amount of money that singles are able to save is 260,000 IQD with 88,000 IQD and 1.8M IQD being the minimum and maximum respectively.
Couples
Saving to Income Ratio
Average Monthly Saved Amount
150,000 IQD
$110 | 440,000 IQD
$330 | 2.3M IQD
$1,800 |
Savings to income distribution levels for couples
| Saving To Income Ratio | % Couples |
|---|
| 0% - 10% | 35% |
| 10% - 20% | 26% |
| 20% - 30% | 19% |
| 30% - 40% | 9% |
| 40% - 50% | 8% |
| > 50% | 3% |
Interpretation and Analysis
Couples who confirmed their ability to save reported saving equivalent to 9.1% to 32% of their monthly income, with 17% being the average for most couples. The average amount of money that couples can save is 440,000 IQD with 150,000 IQD and 2.3M IQD being the minimum and maximum respectively.
Families
Saving to Income Ratio
Average Monthly Saved Amount
200,000 IQD
$160 | 580,000 IQD
$450 | 3.2M IQD
$2,400 |
Savings to income distribution levels for families
| Saving To Income Ratio | % Families |
|---|
| 0% - 10% | 38% |
| 10% - 20% | 29% |
| 20% - 30% | 20% |
| 30% - 40% | 6% |
| 40% - 50% | 5% |
| > 50% | 2% |
Interpretation and Analysis
Families in Baghdad can save anywhere between 7.9% to 30% of their monthly income, with 15% being the average for most families. The average amount of money that families can put aside is 580,000 IQD with 200,000 IQD and 3.2M IQD being the minimum and maximum respectively.
A typical and healthy budgeting structure
The 50/30/20 rule
Spending among different people can vary significantly based on factors such as their income, lifestyle,
location, and personal preferences. A commonly used guideline for budgeting is the 50/30/20 rule,
which suggests allocating your income into three main categories in the following percentages.
50% for needs and financial obligations
This category includes essential expenses like housing, utilities, groceries, transportation, and healthcare.
30% for wants and discretionary spending
This category covers discretionary spending on non-essential items, such as dining out, entertainment, travel, and other lifestyle choices.
20% for savings and emergency fund
This is the percentage that must be allocated to savings, emergency funds, and retirement accounts.
About financial planning, money management, and household budgeting
The 50/30/20 rule is used as a general guideline but may not be the best choice for all people. There are in fact many budgeting plans out there like the 70/20/10 and the 60/20/20 rules, all claiming to be the best. More important than all of this is to establish financial discipline by creating a budget tailored to your specific financial goals and situation. It is very important that your financial outflow be less than your income to maintain a healthy cash flow.
Affordable living in Baghdad
Income and cost of living compatibility
We asked residents one simple question and recorded their answers.
Is it affordable or economical to live in Baghdad?
Around 64% of surveyed residents think that living in Baghdad is affordable with proper budgeting while 36% reported that it is just too expensive and not affordable even with frugality and thriftness.
Low-cost alternatives in Baghdad
People are always looking for ways to cut down expenses and reduce expenditures. The hallmark of any affordable place is the availability of discount stores, bargain deals, smart or secondhand shopping, refurbished items, and couponing. We asked residents how easily cost-cutting is and the answers were distributed as follows:
Plenty of low-cost options65%
Few low-cost options35%
Based on the survey, 65% of the people living in Baghdad have no problem finding low-cost alternatives to support a frugal lifestyle while 35% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.
Emergency Funds
An emergency fund is a financial safety net comprised of easily accessible savings set aside to cover unexpected expenses or financial emergencies, typically amounting to three to six months' worth of living expenses. We asked residents of Baghdad whether they have an emergency fund and the answers were as follows.
Yes64%
No36%
Based on the survey, 36% of the people living in Baghdad said that they don't have an emergency fund while 64% said that they do.
Financial Literacy in Iraq
Financial literacy is the knowledge of concepts and principles related to personal finance that allow individuals to make informed decisions regarding their money such as budgeting, saving, investing, borrowing, managing debt, financial risk management, and planning.
Financial Leteracy51%
We asked residents of Iraq whether they acquired any adequate personal financial training in their lives. Approximately 49% of the people who participated in the survey said that they are not well informed about the topics of budgeting, saving, etc., and just manage things based on their own experience, while 51% said that they know about the general principles of personal finance from sources other than their own experience.
Difficulty in Budgeting and Financial Planning
We wanted to understand whether residents of Iraq have problems or difficulties in managing their expenditures and savings so asked the people one simple question: do you struggle with your personal finances? 40% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 60% said that they have everything under control.
Struggles with finance40%
Easily manages finances60%
Financial goals of people in Baghdad
In an attempt to understand the economic situation in Baghdad, we asked participants about their financial targets. By knowing what the population in general is trying to achieve, we can shed light on the economic outlook, cost of living, and quality of life in general.
| Financial Goal | % People |
|---|
| Emergency Fund | 8% |
| Debt Reduction | 40% |
| Retirement Savings | 9% |
| Education Funding | 7% |
| Homeownership | 18% |
| Investing | 7% |
| Travel or Lifestyle | 8% |
| Healthcare Expenses | 12% |
| Financial Independence | 6% |
Around 8% of those who participated in the survey said that their main goal is to establish an emergency fund to cover unexpected expenses while 40% said their number one priority is to pay off high-interest debt or loans and improve credit. 9% of surveyed people confirmed that saving for retirement to ensure a comfortable lifestyle in the final years is their main target. Around 7% reported that their priority is saving for the tuition fees and education costs of their children while 18% choose to buy a home or pay off existing mortgage before other things. 7% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 8% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 12% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.
Saving Challenges in Baghdad
Reasons that make it difficult for people to save money
We wanted to understand what is stopping people from maximizing their savings in Baghdad. Listed below are the answers given by the survey participants.
| Reason | % People |
|---|
| Low Income | 5% |
| High Expenses | 8% |
| Debt and Loans | 15% |
| Lack of Budgeting Skills | 11% |
| Impulsive Spending | 11% |
| Financial Emergencies | 7% |
| Living the moment | 6% |
| Will do it later | 20% |
| Inflation | 12% |
| Social Pressure | 3% |
| Market Instability | 2% |
Around 5% of the people said that their salary is too low to accommodate a portion for savings while 8% said that the high cost of living leaves little room for savings. 15% of the residents said that they are burdened with debt and find it challenging to save money. 11% reported that they just don't have the knowledge or discipline to create and stick to a budget, leading to overspending and an inability to save. 11% blamed impulsive spending as the reason for saving inability. Around 7% said that unexpected expenses like medical bills or car repairs are derailing their savings goals. 6% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 20% reported that they understand the value of saving but are putting off saving for the future, thinking they have plenty of time to start later. 12% blamed inflation, saying that every time they save some money they end up using it immediately. A surprising 3% said that social pressure and keeping up with peers or societal expectations makes them overspend. Lastly, 2% blamed market instability and price fluctuations.
Typical saving choices for people in Baghdad
Where do people choose to put their savings?
| Saving Type | % People |
|---|
| Emergency Funds | 12% |
| Gold | 12% |
| Savings Accounts | 17% |
| Retirement Accounts | 10% |
| Cash Savings | 19% |
| Real Estate | 9% |
| Investment | 5% |
| Stocks | 5% |
| Bonds | 5% |
| Mutual Funds | 2% |
| Certificates of Deposit | 3% |
Retirement, pension plans, and life after work in Baghdad
What does the retirement lifestyle look like in Baghdad and how much retirement savings are required?
Retirement age
The retirement age for most employees in Iraq is 65 years. Specific retirement ages can vary based on factors like occupation, gender, years of contribution, and location. It is not entirely unlikely for people to retire either before or after this age.
Retirement planning and savings
There are many retirement saving options, some are personally initiated and others are government-sponsered. Regardless of the source of savings, the minimum amount of money that needs to be put aside to ensure a peaceful and comfortable retirement at each age can be found in the table below. This data is largely approximated and can vary drastically based on individual needs and situations. Treat these figures as a general guideline.
The typical saved amount of money you should have at every age as multiples of monthly salary:| Age | Amount |
|---|
| 25 | 5x monthly salary at age 25 |
| 30 | 10x monthly salary at age 30 |
| 35 | 15x monthly salary at age 35 |
| 40 | 25x monthly salary at age 40 |
| 45 | 32x monthly salary at age 45 |
| 50 | 48x monthly salary at age 50 |
| 55 | 56x monthly salary at age 55 |
| 60 | 64x monthly salary at age 60 |
| 65 | 78x monthly salary at age 65 |
The typical average saved amount of money you should have at every age in Baghdad:| Age | Amount |
|---|
| 25 | 3.1M IQD |
| 30 | 6.2M IQD |
| 35 | 11M IQD |
| 40 | 16M IQD |
| 45 | 23M IQD |
| 50 | 33M IQD |
| 55 | 39M IQD |
| 60 | 48M IQD |
| 65 | 58M IQD |
Retirement Income Distribution
We asked residents of Baghdad about their retirement income sources and below are the results.
| Source | % People |
|---|
| Pensions | 12% |
| Savings | 23% |
| Investments | 12% |
| Social Security | 7% |
| Annuities | 7% |
| Part-time Job | 13% |
| Real Estate | 18% |
| Dividends and Interest | 7% |
Retirement Monthly Expenses in Baghdad 200,000 IQD
$150 | 600,000 IQD
$460 | 4M IQD
$3,100 |
Debt, loans, and mortgages in Baghdad
Percentage of people who are in debt
According to the survey, 31% of the people in Baghdad have some kind of debt, loan, mortgage, or credit card payments while 69% reported that they don't have financial obligations to banks.
Debt-to-income ratio in Baghdad
Debt to income ratio
36%
27% to 47%
( monthly debt payment / monthly income ) x 100
Interpretation
The debt-to-income ratio measures the percentage of income being paid as debt settlement across the population. It is calculated by dividing the monthly debt settlement payment of an individual by their monthly income. Based on collected data, approximately 36% of the people's monthly income in Baghdad goes to debt settlement.
Debt levelsMonthly debt settlement payment as percentage of monthly income
| Debt-to-income ratio | % People |
|---|
| > 60% | 3% |
| 50% - 60% | 16% |
| 40% - 50% | 14% |
| 30% - 40% | 16% |
| 20% - 30% | 12% |
| 10% - 20% | 14% |
| 0% - 10% | 26% |
According to our data, 3% of the debtors in Baghdad pay 60%+ of their income as debt settlement while 16% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 14% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 16% dedicated 30% to 40% of income for same. Things are looking brighter for 12% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.
Distribution by type of debt in Baghdad
| Debt | % People |
|---|
| Real Estate Mortgage | 10% |
| Auto Loan | 17% |
| Student Loan | 4% |
| Credit Card | 28% |
| Personal Loan | 41% |
10% of debtors in Baghdad confirm that real estate mortgages constitutes the main part of their outstanding debt while 28% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 17% of people and personal loans rose at 41%. Lastly, student loans are the main source of debt for 4% of debtors in Baghdad.
About credit score and debt managementManaging debt is a critical aspect of maintaining a favorable credit score. Debt reduction is the first thing you should do improve your financial situation. Getting rid of debt takes precedence over saving money because of interest rates.
Good debt vs. Bad debt
Not all debt is bad. Good debt typically refers to borrowing money for investments that can increase in value or generate income over time like purchasing a home or acquiring student loans. On the other hand, bad debt involves borrowing for things that fail to generate lasting value like high-interest credit card debt used for non-essential expenses like luxury items or vacations.
Loan Affordability Index in Baghdad
Besides measuring the loan-to-income ratio, we asked residents of Baghdad how many times in a year they defaulted or were unable to pay their due credit card or loan payments on time. Understanding how often people default on their due payments is one of the indicators of the cost of living and economic situation.
Frequency and percentage of people who failed to pay their monthly credit card or loan payments on time last year.
| Frequency | % People |
|---|
| Never | 52% |
| Once a year | 23% |
| Twice a year | 12% |
| Three times a year | 9% |
| Four times a year | 4% |
Housing costs, accommodation, and housing affordability in Baghdad
Rental costs and house/apartment prices can vary drastically between different areas and locations.
Rent Cost in Baghdad
Monthly Rent Prices
Studio apartment | 100,000 IQD | 150,000 IQD | 400,000 IQD |
1-bedroom apartment | 150,000 IQD | 240,000 IQD | 600,000 IQD |
2-bedroom apartment | 200,000 IQD | 300,000 IQD | 800,000 IQD |
3-bedroom apartment | 240,000 IQD | 400,000 IQD | 1.1M IQD |
Furnished apartment | 480,000 IQD | 1.2M IQD | 2.4M IQD |
Townhouse | 400,000 IQD | 600,000 IQD | 1.7M IQD |
House | 480,000 IQD | 1.2M IQD | 2.4M IQD |
Villa | 600,000 IQD | 1.5M IQD | 2.4M IQD |
The monthly rental cost of a studio apartment in Baghdad ranges between 100,000 IQD and 400,000 IQD, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 150,000 IQD to 600,000 IQD. Two-bedroom rentals rate ranges between 200,000 IQD and 800,000 IQD per month. The monthly rental for a three-bedroom apartment ranges from 240,000 IQD to 1.1M IQD. The average rent of a townhouse in Baghdad is around 600,000 IQD while house rental costs can be as high as 1.2M IQD per month. Finally, if you want to rent a villa, expect to pay anywhere from 600,000 IQD to 2.4M IQD per month.
Apartment and house prices in Baghdad
Cost of buying a property
Studio apartment
1-bedroom apartment
2-bedroom apartment | 40M IQD | 120M IQD | 240M IQD |
3-bedroom apartment | 130M IQD | 200M IQD | 600M IQD |
| $100,000 | $150,000 | $460,000 |
Townhouse | 170M IQD | 400M IQD | 1,500M IQD |
House | 200M IQD | 1,200M IQD | 1,700M IQD |
Villa | 240M IQD | 1,300M IQD | 2,000M IQD |
The average price of a studio apartment in Baghdad can range from 20M IQD to 60M IQD depending on location. One bedroom cost can be anywhere from 24M IQD to 150M IQD. A villa can cost you 1,300M IQD on average with prices ranging from 240M IQD to 2,000M IQD.
If you're leasing or purchasing, housing costs in Baghdad will probably constitute your biggest expenditure, yet it's an area where you wield considerable influence. This is due to the substantial variance in housing prices across communities. Keep in mind the location of your workplace and the accessibility of essential amenities to prevent negating the savings from lower rental rates with increased transportation expenses.
House / apartment prices to income ratio
Property price to income ratio( average property price / average monthly income ) x 100
| 34 | x95 monthly income | 216 |
Property prices in Baghdad can be x95 to x216 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x95 multiples of the average monthly salary in Baghdad.
Rent to income ratio
Rent to income ratio( monthly rental / monthly income ) x 100
The average rent-to-income ratio in Baghdad is around 32%. This means that people pay 32% of their income for rent. Those figures can range from 20% to 43% depending on the salary, location, and type of property.
The housing-to-income ratio is a very important metric to evaluate and measure how affordable living is in a particular area, city, or country since housing comprises the biggest chunk of expenditure. A higher housing to income ratio means that the place is relatively expensive. The figure by itself does tell much. It only starts to make sense when comparing the housing to income ratio across different locations.
Housing affordability index
The housing affordability index measures how affordable accommodation is in a particular place. This can measured in multiple ways, the most common being housing expenditure to total expenditure ratio and the rent to income ratio. The housing expenditure ratio is a figure reported by individuals on the percentage they allocate for housing. Rent to income ratio is calculated by dividing the average monthly rent by the average income. Because these values are both percentages, we can find their average and get the best of the two worlds.
Housing Affordability Index
29% Property Taxes
Real estate owners pay property taxes to local tax authorities, which are determined by the assessed value of their property. Typically, these taxes are paid once a year. Property tax funds contribute to community development, financing infrastructure improvements, public services, and local education initiatives.
Home Maintenance Costs
Home maintenance costs encompass various expenses associated with the upkeep and repair of a residence. These expenditures include regular tasks such as lawn care, pest control, and HVAC system servicing, as well as occasional repairs and renovations like fixing leaks, painting, or replacing appliances.
| 1,800 IQD | 24,000 IQD | 240,000 IQD |
Urban vs. rural living costs
Urban living typically entails higher housing and transportation costs due to demand and limited space, while rural areas generally offer lower housing expenses but may have higher prices for goods and services. The differnce in rental rates between urban areas and rural areas can be as high as 300% in some cases.
SingleSpending habits, consumption analysis, and expenditure patterns for a single person living in Baghdad
Housing30%
30% of total expenses on average (18% to 42%)
| LOW | $75 98,000 IQD |
| AVERAGE | $220 290,000 IQD |
| HIGH | $1,500 2M IQD |
| Per Month |
Utilities, Electricity, Water8%
8% of total expenses on average (4% to 13%)
| LOW | $12 16,000 IQD |
| AVERAGE | $37 49,000 IQD |
| HIGH | $250 330,000 IQD |
| Per Month |
Transport, Fuel5%
5% of total expenses on average (3% to 11%)
| LOW | $17 22,000 IQD |
| AVERAGE | $50 65,000 IQD |
| HIGH | $330 440,000 IQD |
| Per Month |
Food and Groceries19%
19% of total expenses on average (13% to 24%)
| LOW | $33 44,000 IQD |
| AVERAGE | $100 130,000 IQD |
| HIGH | $670 870,000 IQD |
| Per Month |
Healthcare12%
12% of total expenses on average (6% to 16%)
| LOW | $19 25,000 IQD |
| AVERAGE | $56 74,000 IQD |
| HIGH | $370 490,000 IQD |
| Per Month |
Leisure, Shopping3%
3% of total expenses on average (2% to 6%)
| LOW | $10 14,000 IQD |
| AVERAGE | $31 41,000 IQD |
| HIGH | $210 270,000 IQD |
| Per Month |
Education1%
1% of total expenses on average (0.00% to 3%)
| LOW | $4.2 5,400 IQD |
| AVERAGE | $12 16,000 IQD |
| HIGH | $83 110,000 IQD |
| Per Month |
Other Expenses21%
21% of total expenses on average (13% to 25%)
| LOW | $37 49,000 IQD |
| AVERAGE | $110 150,000 IQD |
| HIGH | $750 980,000 IQD |
| Per Month |
CoupleAverage monthly living expenditure breaks and spending patterns for couples in Baghdad
Housing27%
27% of total expenses on average (20% to 37%)
| LOW | $110 150,000 IQD |
| AVERAGE | $340 450,000 IQD |
| HIGH | $1,800 2.4M IQD |
| Per Month |
Utilities, Electricity, Water7%
7% of total expenses on average (5% to 11%)
| LOW | $17 23,000 IQD |
| AVERAGE | $52 68,000 IQD |
| HIGH | $280 360,000 IQD |
| Per Month |
Transport, Fuel9%
9% of total expenses on average (3% to 14%)
| LOW | $42 54,000 IQD |
| AVERAGE | $120 160,000 IQD |
| HIGH | $670 870,000 IQD |
| Per Month |
Food and Groceries17%
17% of total expenses on average (12% to 22%)
| LOW | $49 64,000 IQD |
| AVERAGE | $150 190,000 IQD |
| HIGH | $780 1M IQD |
| Per Month |
Healthcare14%
14% of total expenses on average (8% to 18%)
| LOW | $38 50,000 IQD |
| AVERAGE | $110 150,000 IQD |
| HIGH | $610 800,000 IQD |
| Per Month |
Leisure, Shopping4%
4% of total expenses on average (1% to 7%)
| LOW | $21 27,000 IQD |
| AVERAGE | $62 82,000 IQD |
| HIGH | $330 440,000 IQD |
| Per Month |
Education1%
1% of total expenses on average (0.00% to 3%)
| LOW | $6.9 9,100 IQD |
| AVERAGE | $21 27,000 IQD |
| HIGH | $110 150,000 IQD |
| Per Month |
Other Expenses20%
20% of total expenses on average (14% to 26%)
| LOW | $59 77,000 IQD |
| AVERAGE | $180 230,000 IQD |
| HIGH | $940 1.2M IQD |
| Per Month |
FamilyAverage monthly expenses and break out of spending for families living in Baghdad
Housing26%
26% of total expenses on average (21% to 36%)
| LOW | $160 200,000 IQD |
| AVERAGE | $440 580,000 IQD |
| HIGH | $2,400 3.2M IQD |
| Per Month |
Transport, Fuel5%
5% of total expenses on average (3% to 7%)
| LOW | $39 51,000 IQD |
| AVERAGE | $110 150,000 IQD |
| HIGH | $610 800,000 IQD |
| Per Month |
Food and Groceries21%
21% of total expenses on average (14% to 27%)
| LOW | $87 110,000 IQD |
| AVERAGE | $250 330,000 IQD |
| HIGH | $1,400 1.8M IQD |
| Per Month |
Healthcare11%
11% of total expenses on average (7% to 16%)
| LOW | $39 51,000 IQD |
| AVERAGE | $110 150,000 IQD |
| HIGH | $610 800,000 IQD |
| Per Month |
Leisure, Shopping3%
3% of total expenses on average (1% to 7%)
| LOW | $24 32,000 IQD |
| AVERAGE | $69 91,000 IQD |
| HIGH | $380 500,000 IQD |
| Per Month |
Education13%
13% of total expenses on average (6% to 21%)
| LOW | $68 89,000 IQD |
| AVERAGE | $190 250,000 IQD |
| HIGH | $1,100 1.4M IQD |
| Per Month |
Other Expenses15%
15% of total expenses on average (8% to 20%)
| LOW | $58 76,000 IQD |
| AVERAGE | $170 220,000 IQD |
| HIGH | $910 1.2M IQD |
| Per Month |
StudentCost of living and expenses break down for students living in Baghdad
Housing18%
18% of total expenses on average (13% to 24%)
| LOW | $40 52,000 IQD |
| AVERAGE | $99 130,000 IQD |
| HIGH | $180 230,000 IQD |
| Per Month |
Utilities, Electricity, Water6%
6% of total expenses on average (4% to 10%)
| LOW | $6.6 8,600 IQD |
| AVERAGE | $16 22,000 IQD |
| HIGH | $30 39,000 IQD |
| Per Month |
Transport, Fuel4%
4% of total expenses on average (4% to 10%)
| LOW | $12 15,000 IQD |
| AVERAGE | $29 38,000 IQD |
| HIGH | $52 68,000 IQD |
| Per Month |
Food and Groceries23%
23% of total expenses on average (17% to 27%)
| LOW | $33 43,000 IQD |
| AVERAGE | $82 110,000 IQD |
| HIGH | $150 190,000 IQD |
| Per Month |
Healthcare9%
9% of total expenses on average (6% to 12%)
| LOW | $9.9 13,000 IQD |
| AVERAGE | $25 32,000 IQD |
| HIGH | $45 58,000 IQD |
| Per Month |
Leisure, Shopping3%
3% of total expenses on average (2% to 7%)
| LOW | $8.2 11,000 IQD |
| AVERAGE | $21 27,000 IQD |
| HIGH | $37 49,000 IQD |
| Per Month |
Education18%
18% of total expenses on average (11% to 23%)
| LOW | $31 41,000 IQD |
| AVERAGE | $78 100,000 IQD |
| HIGH | $140 180,000 IQD |
| Per Month |
Other Expenses18%
18% of total expenses on average (12% to 24%)
| LOW | $25 32,000 IQD |
| AVERAGE | $62 81,000 IQD |
| HIGH | $110 150,000 IQD |
| Per Month |
