Skip to main content

Why Iran’s property market is unlikely to boom anytime soon

The Iranian real estate market signals that a recovery is on the way, after an almost three-year-long recession — but there is still debate about the likelihood of a property boom.
EDITORS' NOTE: Reuters and other foreign media are subject to Iranian restrictions on their ability to report, film or take pictures in Tehran. 

Construction cranes work on a high rise buildings in the foothills of the Alborz mountains in north Tehran April 15, 2010. President Mahmoud Ahmadinejad has asked 5 million Tehranis to evacuate the capital since they know their sprawling metropolis is due for a massive earthquake. When the last major earthquake hit, in 1831, Tehran was tiny compared to the metropo

TEHRAN, Iran — Signals from the Iranian real estate market suggest that a recovery is on the way, after an almost three-year-long recession. Yet there are contradictory statements being made about the likelihood of a property boom. Indeed, those who are practically engaged in the housing industry are relatively optimistic about speedy growth, while analysts believe a sharp hike in prices is unlikely.

The number of property deals in the 12-million-strong market in Tehran rose by 27.6% in the month to July 21, compared with the same period last year. However, the figure dropped 4% compared with the month before, according to the Central Bank of Iran’s latest housing report. Meanwhile, trading of mortgage bonds in the over-the-counter Iran Fara Bourse rose 11% in the week to July 21, ILNA reported, citing data released by the Central Securities Depository of Iran.

Access the Middle East news and analysis you can trust

Join our community of Middle East readers to experience all of Al-Monitor, including 24/7 news, analyses, memos, reports and newsletters.

Subscribe

Only $100 per year.