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Houthi extortion and tax campaigns hinder construction and real estate sales in Ibb.

Houthi Militias Continue Financial Extortion in Ibb Governorate

The Houthi militias have intensified their financial extortion and various forms of harassment targeting property and landowners in Ibb Governorate. These actions occur amidst widespread violations in regions under their control.

Local Sources Report Extortion Tactics

Local sources indicate that property and landowners in Ibb face significant financial extortion, which has adversely affected real estate prices. Over the past two years, property values have plummeted considerably due to these pressures.

Construction Activity Comes to a Halt

Furthermore, the construction of new properties in Ibb has nearly ceased. Many contractors have declared bankruptcy as a result of the hefty fees imposed by the Houthi militias on the real estate market. The construction boom that Ibb experienced in recent years has now come to a standstill, especially as many residents seek work abroad.

High Fees and Taxes Stifle Development

Sources explain that the decline in construction activity stems from the Houthi militias’ imposition of exorbitant fees for building permits. Additionally, they have enforced a punitive 20% tax on property transactions, further discouraging investment in the sector. These measures have forced numerous contractors to sell their equipment and declare insolvency.

Impact of the Houthi Regime on Real Estate

Ibb had previously witnessed a construction surge, driven by an influx of displaced individuals and investments from expatriates, especially following the rise in currency exchange rates at the onset of the war. However, this growth has significantly reversed in recent years due to the oppressive practices and violations enacted by the Houthis.

In conclusion, the financial burdens and regulatory hurdles imposed by the Houthi militias have severely disrupted the real estate market in Ibb Governorate. The ongoing situation raises concerns about the future of construction and property investment in the region.

 

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Salam Noor

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