In a nation still healing from decades of conflict, Kabul, the capital of Afghanistan, is witnessing an unexpected phenomenon: a booming luxury real estate market. Amid the challenges of rebuilding a fractured economy, the allure of high-end properties is captivating buyers, revealing a side of Afghanistan often overlooked.
A Golden Villa Amid a Struggling Economy
Omidullah, a Kabul real estate agent, proudly showcases one of his most extravagant listings: a nine-bedroom, nine-bathroom villa adorned with white and gold accents. The $450,000 property, crowned with the glittering Arabic inscription “Mashallah” (“God has willed it”), stands as a symbol of the city’s emerging luxury market.
Despite Afghanistan’s dire economic challenges, including widespread reliance on humanitarian aid and a lack of mortgage systems, properties like this villa are attracting offers.
“It’s a myth that Afghans don’t have money,” Omidullah says. “Many wealthy businessmen, some with thriving ventures abroad, are investing in real estate here. There are houses in Kabul worth millions of dollars.”
The Peace Effect on Real Estate
Improved security under the Taliban administration has contributed to the surge in Kabul’s property market. The city has become significantly less violent since the Taliban transitioned from insurgents to rulers, making the prospect of investing in Kabul more appealing.
Another factor is the influx of Afghans returning from abroad, bringing their savings to invest in a homeland they now see as stable. Many are fleeing deportation campaigns in Iran and Pakistan, seeking a fresh start in their native country.
The unique financial system in Afghanistan also plays a role. Without mortgages, most property transactions are cash-based, or rely on a “geerawi” system, where a fixed sum is exchanged for temporary ownership until the landlord repays the amount.
Builders and Buyers Thriving
The real estate surge has benefited industry professionals like Ghulam Mohammed Haqdoost, a seasoned real estate agent.
“House prices have risen by almost 40%,” Haqdoost notes. “In the past three years, we’ve sold nearly 400 properties. That level of activity was unheard of before.”
Haqdoost’s business employs over 1,000 workers, including women who cater to female clients—a key demographic in Afghan real estate. Despite perceptions of women’s disempowerment, Haqdoost affirms their significant influence. “The power and authority of the house lie with the women. They decide whether or not to buy,” he explains.
The demand for luxury features such as gardens, gyms, swimming pools, and guest quarters reflects Afghan culture’s emphasis on hospitality. Diaspora buyers are also driving a shift toward modern amenities, including dining tables, central heating, and elevators.
Kabul’s Evolving Landscape
Efforts by Kabul’s municipal authorities to beautify the city are supporting this real estate boom. Road repairs, new streetlights, tree planting, and waste removal projects are underway to make the capital more livable. However, congestion and noise in some neighborhoods persist, a challenge for the city’s growing population, which has ballooned from 500,000 to over 5 million in two decades.
An Oasis on the Outskirts
For those seeking tranquility, properties near the Qargha Reservoir offer an escape from the urban sprawl. Among the most coveted listings is a sprawling 4,000-square-meter property owned by the family of Arash Asad. The estate, with panoramic views of the reservoir and Paghman Mountains, is on the market for $800,000.
“Gardens are very important to Afghans,” Asad says. “Many come from villages and want a piece of that life to remind them of their roots.”
Despite the high price, interest is strong. Social media posts showcasing the estate have generated a flood of inquiries.
A Paradox of Prosperity
Afghanistan’s luxury real estate market underscores a paradox. While much of the population struggles with poverty, a segment of Afghans—through legal or illicit means—have accumulated significant wealth.
“People think this country has no jobs and no economy,” Asad observes. “But Afghans have found ways to make money. You wouldn’t believe it.”
As the sun sets over the Qargha Reservoir, the contrasting narratives of Kabul—a city of resilience and revival—become clear. The luxury villas rising amid the rubble tell a story of hope, ambition, and the complexities of a nation striving to redefine itself.
