Economic World - Housing and Urban Group: Two inflationary events in the residential construction market over the past month have made the 'productive activity ground' for construction professionals more uneven than before; on one hand, a nearly 30% surge in construction prices compared to mid-spring, and on the other hand, intensified instability in the prices of construction materials, which has created a 'risk of bankruptcy' for builders. A report from 'Economic World' indicates that according to a new estimate from the Civil Engineering Group of the Building Engineering Organization, which has announced construction cost figures in a written letter, the current average cost of constructing one square meter of residential building in a two-story construction project is 47 million tomans, in a five-story construction, which is the common type of building in Tehran, it is 58 million tomans, and in six and seven-story projects, it is 62 million tomans. These figures, of course, do not include 'ancillary costs and the profit expected by the contractor,' which, considering the weight of these factors at around 30%, will result in a final construction cost in conventional constructions exceeding 70 million tomans.
Counterattack of Builders at the Cost of Liquidity
The residential construction market in Iran is facing significant inflation, with construction costs rising nearly 30% in a month, leading to increased risks of bankruptcy for builders. Current average construction costs are reported to exceed 70 million tomans per square meter when factoring in additional costs.
👥 Key Players
📰 What Happened
The Iranian residential construction market has experienced a nearly 30% increase in construction costs over the past month, leading to heightened risks of bankruptcy for builders. Current average construction costs are reported to exceed 70 million tomans per square meter when additional costs are included.
- Construction prices surged nearly 30% compared to mid-spring.
- Average construction costs for residential buildings in Tehran now exceed 70 million tomans per square meter.
💡 Why It Matters
📚 Background
Iran's economy has been facing high inflation and instability, affecting various sectors including construction. Understanding these dynamics is crucial for grasping the broader economic challenges in the country.
🏷️ Entities Mentioned
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