Mohammad Reza Rezaei Koochi, the head of the Construction Commission of the Iranian regime’s Majlis (Parliament), has announced a 25% progress halt due to the suspension of the “National Housing Movement” and stated that due to the increase in prices and market fluctuations, the cost of housing construction is no longer predictable.
The regime’s ILNA news agency also reported that according to the Ministry of Roads and Urban Development, construction of more than 2.5 million residential units has commenced under the “National Housing Movement” project, but three years into the government’s tenure, no significant progress has been made in this regard.
ILNA reported that reports indicate that only 51,000 hectares of land have been provided for this project, and no further action has been taken.
Koochi, the head of the Majlis’ Construction Commission, confirmed this, stating that the physical progress of the project remains at 25%.
According to Koochi, prices are highly volatile, and developers cannot reach a fixed and inflexible price and sign contracts.
Media outlets announced in November 2023 that the increase in the completed price of “National Housing” and the critical economic situation have made applicants unable to afford their “deposit.”
The latest official report on housing prices in Iran shows that the average price per square meter in the capital exceeded 830 million rials (approximately $130) in March 2024.
Experts believe that “National Housing” will not progress in the Raisi administration, and the fate of withdrawing $2 billion from the National Development Fund alongside more than 10,000 hectares of surplus government land identified for this purpose will ultimately remain uncertain.
Davood Biginejad, the vice president of the National Real Estate Consultants Union, mentioned the increase in housing prices in the past month and predictions of continued price growth, stating that rental rates will increase due to this price change.
The state-run Donya-e-Eqtesad newspaper also wrote on March 23 that the currency surge in February and March 2024 has been a factor in “disturbing the relative tranquility of housing prices” to the extent that monthly inflation, which was an average of 1.5% from March to December 2023, suddenly rose to over 3.5% in February and March 2024.
The newspaper’s report emphasized that with this major inflationary recession, the number of residential units traded in 2023 decreased by 55% compared to 2022.
Reports indicate that over the past decade, housing rental prices in Tehran have experienced significant growth, with rental rates increasing by 540% from 2012 to 2021.
The Majlis Research Center also announced in August 2023 that households in the first to third deciles are absolutely unable, and those in the third to fifth deciles are “relatively” unable to meet their housing needs.
One of Ebrahim Raisi’s electoral promises was to build one million homes per year, but statistics show that three years into Ebrahim Raisi’s government, no significant developments have occurred in this area.
