Chairman of the Parliament's Civil Commission: Chinese Companies Will Enter Iran's Housing Market from May 2024

Despite denials from government officials, the Chairman of the Civil Commission of the Islamic Consultative Assembly has confirmed the entry of 'Chinese companies' into Iran's housing market, claiming they will arrive from 'May of next year.' Mohammad Reza Rezaei Koocheh stated to the ILNA news agency regarding the use of 'Chinese companies' in the housing market and the differences in negotiations between the Ministry of Roads and Urban Development and Tehran Municipality for collaboration with the Chinese: 'Negotiations between the municipality and the Ministry of Roads and Urban Development for cooperation in housing construction have been ongoing and the model of cooperation is also participatory.' He further claimed that the model of cooperation with Chinese companies in housing construction for Iranians is 'only investment,' adding, 'Chinese money will enter the housing market.' On March 2, the 'Khabar Online' website quoted Iraj Rahbar, head of the National Builders Association, stating that the construction of housing by the Chinese relates to the issue of 'oil barter,' and through this, the Chinese are expected to receive Iranian oil at a lower price. The Islamic Republic and the People's Republic of China signed a 25-year strategic cooperation agreement during Hassan Rouhani's presidency, the contents of which have never been disclosed despite widespread reactions and protests, and it remains classified. This confidential cooperation document was signed by senior officials of both countries, and in Tehran, Ali Larijani, the former Speaker of the Islamic Consultative Assembly, was responsible for its follow-up by Ali Khamenei, the leader of the Iranian government, until two years ago. According to Mohammad Reza Rezaei Koocheh, 'There is no plan to use Chinese labor in Iran's construction industry.' Previously, officials from Tehran Municipality and the Ministry of Housing and Urban Development of the Islamic Republic had each promised the presence of Chinese companies in Iran to fulfill their housing commitments. The Fars news agency, affiliated with security institutions, reported in December of this year that the presence of Chinese companies in housing construction in the capital is strengthening, stating that during Alireza Zakani's visit to China, housing was the subject of a memorandum of understanding signed during this trip. On January 30, Hamid Reza Sarami, Deputy for Urban Planning and Architecture of Tehran Municipality, informed the Tehran-based 'Donya-e-Eqtesad' newspaper about a plan for 'neighborhood development by private Chinese construction companies on a large scale of over 1,000 units' on 'brownfield' lands or reserve lands in areas 9 to 16 of Tehran. However, reports indicate that companies active in the Chinese construction industry have debts exceeding $390 billion, which poses significant risks for their presence in Iran. Other concerns include the presence of Chinese labor in the Iranian labor market and society. Recently, Ramin Ghoran, Secretary of the Housing and Construction Builders Association, mentioned the possibility that China intends to transfer its prisoners to Iran for housing construction. According to him, these individuals are transferred to other countries for work at 'lower wages.' This claim faced widespread backlash, and government officials quickly denied it. Ibrahim Raisi and figures close to him have promised and campaigned for 'the construction of one million housing units annually' and 'four million housing units by the end of the term' since the middle of the 2021 election campaign, although to date, more than two and a half years later, no projects in this regard have been completed.