KABUL (SW) – A recent survey conducted by Salam Watandar involving 30 tenants and representatives from various real estate offices in Kabul reveals that rental prices have significantly increased over the past three years.
This persistent rise occurs amidst a lack of oversight and regulation by relevant authorities, effectively leaving rent pricing in the hands of property owners.
According to representatives from several real estate offices, rent prices have increased by approximately 40% over the past three years. This surge is attributed to several factors, including the purchase of properties by Afghan expatriates, a decline in new housing construction, rising population due to the return of Afghan migrants from Iran and Pakistan, and ongoing political and social instability.
Many tenants in Kabul express their inability to afford rising rent prices, forcing them to cut back on essential living expenses. Some have even eliminated necessary costs, such as adequate nutrition for their children, to ensure they can pay the rent by the month’s end.
Maryam, a tenant in Kabul, voiced her frustrations over unprecedented rent increases, saying: “Due to various problems, we have moved twice. The economic situation is poor; there are no jobs; rent has increased, and if we miss a payment, the landlord responds harshly. Tenants are unable to provide for their children’s education or proper food, leading to malnutrition because they prioritize rent over nutrition.”
This dire situation has prompted some tenants from central Kabul to relocate to more distant areas away from the center and markets.
Jasoor, a resident of the Khairkhana area of Kabul, shared, “The rent has increased. Our rental price is 8,000 afghanis per month for a three-room house, and due to rising costs, we’ve moved twice this year. Since the Islamic Emirate took over, rents have increased, forcing us to leave our home.”
Ali, another Khairkhana resident, echoed these sentiments: “Rents are high; we currently pay 8,000 afghanis for a three-room house, shared between two families. We’ve relocated twice in two years due to rent hikes, we work hard every day to earn a bread for the evening.”
Somaya, a resident of Dasht-e-Barchi in western Kabul, mentioned her preference for living farther from the city to afford rent. “We’ve moved twice a year due to rising rents, even willing to live in the mountains if it means cheaper housing.”
Landlords also confirm the rise in rents, citing increased personal financial demands.
Malika Haidari, a property owner, explained: “The economic downturn forces us to rent at higher rates to support our families, with many willing to pay up to 15,000 afghanis if needed.”
Real estate agents report a 40% increase in rents over the past three years, with central areas such as Shahr-e-Naw, Qala-e-Fathullah, Karta-e Chahar, and Khairkhana seeing the most substantial hikes. In contrast, suburban areas experience increases of 20-30%.
One property agent said: “More affluent areas have seen greater increases, while less developed regions have experienced smaller hikes.”
Despite the alarming rise in rental prices, both real estate agents and tenants report a complete lack of oversight and regulation. Approximately 90% of rental prices are determined by landlords, with real estate offices providing only advisory roles.
Ghafar Rahimi, an official at a Kabul real estate office, remarked: “There is currently no control over rental prices. A governing body should exist to regulate housing rents, but unfortunately, no such authority is in place. The Ministry of Finance and the municipality are responsible for updating property rates annually, but this does not happen in our country.”
Kabul residents like Mohammad argue for de-facto government intervention, asserting that “the rent of the houses is determined by the landlords without any government supervision, and it is not fair in this situation. A government agency should control the fares and the price should be determined according to the economy of the people and the facilities of their homes.”
Nematullah Barekzai, Cultural Affairs Advisor of Kabul Municipality, says “the municipalitt bears no responsibility for regulating personal property rents”.
Officials from a number of real estate agencies, in a conversation with Salam Watandar, say that their work permits are issued by the Ministry of Justice; however, the ministry has no involvement in setting the rates.
Salam Watandar sought a response from officials at the Ministry of Justice on this matter, however, repeated attempts to contact them were unsuccessful.
Experts attribute the rise in rents to reduced investment in housing. They suggest that the Ministry of Urban Development “should build more houses” to meet the increasing demand for housing in Kabul.
Economic affairs expert Sayed Mahfooz Faqiri has identified two critical factors contributing to the escalating rental prices in Kabul, saying: “A significant decline in housing investment and a mismatch between supply and demand are the reasons”. He notes that reduced investment has led to a decrease in the availability of housing, which, combined with increasing demand, has resulted in soaring rent prices.
Fahim Chakari, another expert, agrees: “One of the reasons for rising rents and inflation is the decline in investment in the housing sector, which has led to a reduced supply of housing. The Ministry of Urban Development must address this issue by constructing more residential units and utilizing collected resources for new housing projects or similar developments.”
The report indicates that while rental prices in Kabul are on the rise, unemployment rates are also increasing, exacerbating the economic strain on residents.
Samiullah Ebrahimi, spokesperson for the Ministry of Labour and Social Affairs, points to halted investments in Afghanistan as a key reason for rising unemployment. “The primary cause of unemployment and poverty has been the ongoing conflicts in Afghanistan, which have worsened these issues. The Islamic Emirate is working to provide job opportunities for youths through various projects,” he further mentioned.
Abdul Rahman Habib, spokesperson for the Ministry of Economy, says that poverty in Afghanistan has deep roots, although the de-facto government’s recent measures have reportedly reduced poverty levels.
As the international aid to Afghanistan diminishes, the situation remains grim, particularly for women and children. The United Nations reports a surge in poverty and malnutrition, with the World Food Programme (WFP) indicating it can only assist one out of every three children suffering from malnutrition. Additionally, 600,000 Afghan women will miss out on food aid this year due to budget constraints.
