According to the announcement by the Engineering Organization, the cost of constructing seven types of buildings in the year 1402 has increased by 38 to 48 percent compared to the previous year and has doubled compared to the year 1400. The reported prices for the year 1400 were 3 million tomans per square meter for 13 to 15-story buildings and 5 million tomans for buildings of 16 stories and above. In the new prices for the year 1402, these figures have been set at over 10 million tomans. This official announcement of price increases comes while on July 2, the head of the Housing Bank announced that the new price for constructing national housing units is about 6.5 million tomans per square meter. However, the head of the Builders Association has reported that the Ministry of Roads has agreed to the 10 million toman price for the construction of the 'National Housing Movement' and stated that new contracts will be based on this new price. Unofficial reports indicate that the average price of housing in Tehran has reached about 70 million tomans per square meter by the end of Farvardin 1402. The latest official statistics on the average property price in Tehran are from Dey 1401, where the Statistical Center reported a weighted average housing price of 54 million and 926 thousand tomans. The increase in housing construction costs and the resulting inflation in the housing market have led to a decrease in people's access to housing. This is while the main slogan of Ebrahim Raisi was to build one million housing units annually. However, the Raisi government has so far taken actions to fulfill the promise of building one million housing units that, according to experts, have not only failed to resolve previous issues but have also added new ones. Today, 19 months into the life of the thirteenth government, the prices of buying and renting housing have multiplied, and in Tehran, the price of small, older houses in average areas has reached 5 billion tomans. Field reports published by Iranian media indicate that in Tehran, for an 80 to 90 square meter unit with a budget of 5 billion tomans, one must head to areas such as 'Vardavard', 'Afseriyeh', and 'Azarbaijan'. Urban marginalization in Iran; 'harsh poverty' has left millions without housing. A parliament representative criticized the 'playing with numbers' in Raisi's government: the real inflation is 120 percent. Tax on empty houses of 1.5 billion tomans in 3 months. A representative reacted to the 'insurance for construction workers' bill; there is a mafia in the parliament. Construction contracts at 9.5 million tomans per square meter; a labor activist stated: 'National housing' plans are not for workers.
In Two Years; Housing Construction Costs Doubled
The cost of housing construction in Iran has doubled over the past two years, significantly impacting affordability and access to housing. Despite promises from President Ebrahim Raisi to build one million homes annually, the government has struggled to address the housing crisis. This situation highlights the growing economic challenges faced by many Iranians.
👥 Key Players
📰 What Happened
The cost of housing construction in Iran has significantly increased, doubling over the past two years, which has worsened housing affordability for many citizens. Despite government promises to build more homes, the situation has led to greater economic challenges for the population.
- Construction costs for various building types increased by 38 to 48 percent in 1402 compared to the previous year.
- Average housing prices in Tehran have reached about 70 million tomans per square meter.
💡 Why It Matters
📚 Background
Iran has been facing a housing crisis characterized by high inflation and rising costs, making it increasingly difficult for citizens to afford housing. The government's ambitious housing plans have not yet translated into tangible results for the population.
🏷️ Entities Mentioned
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