A new report from the United Nations shows that Iraq's total housing stock is around 2.8 million homes and another 1.5 million are needed while more than half of the country's population is living in slum like conditions.
Now the government has set out its construction targets which include building 3.5 million new homes. It wants to provide 350,000 units every year for the next decade.
'There are substantial opportunities for construction and development. Our rebuilding programme is massive. As well as housing we need to invest in schools, roads, bridges and other infrastructure,' said a government spokesman.
Key infrastructure projects include a new £3 billion international airport at Karabala, new rail lines worth $5 billion and a number of multibillion dollar housing developments around the country.
The United Nations agrees that the development must begin urgently. In its report it points out that the lack of housing is likely to become even more of a problem as the country's urban population is expected to double by 2030.
'Iraq has an increasing housing shortage, crumbling infrastructure and a lack of basic services as a result of years of war, neglect and lack of sufficient investment. We need to address this urgently,' said Planning Minister Ali Baban.
He added that it could not be done without foreign investment and estimated that 85% of the necessary funding would need to come from overseas. 'Sustainable urban development is a major challenge for Iraq,' he said.
A number of property development companies have already expressed an interest. Baghdad Mayor Saber al-Issawi said the city had received bids from seven foreign companies to build 150,000 flats, stores, parks and cinemas over 10 years in one rundown area of northeastern Baghdad.
A second $20 billion housing project in eastern Baghdad in an area that was a military camp in Saddam Hussein's time will include 65,000.