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Residential Construction Prices Increased by 44% in Summer

Jan 25, 2026 January 25, 2026 3 min read 📰 Radio Farda
📋 Key Takeaway

Residential construction prices in Iran increased significantly this summer, with a 44.4% rise compared to last year. The number of transactions for residential properties and land also grew, indicating ongoing activity in the housing market outside Tehran despite a decline in the capital. This trend highlights the challenges faced by urban households amid rising costs.

🔍 Quick Context Guide
💡 Bottom Line: Rising construction and rental prices in Iran highlight the ongoing economic pressures faced by urban households.

👥 Key Players

Statistical Center of Iran MENTIONED
Government agency responsible for collecting and analyzing statistical data
"Their reports provide critical insights into economic trends and housing market dynamics in Iran."
Central Bank of Iran MENTIONED
National bank responsible for monetary policy and financial stability
"Their data influences economic policy and reflects the health of the housing market, particularly in Tehran."

📰 What Happened

Residential construction prices in urban Iran surged by 44.4% this summer compared to last year, with a notable increase in transactions for both residential properties and land. This trend contrasts with a decline in housing transactions in Tehran, indicating a divergence in market activity between the capital and other urban areas.

  • Average price per square meter of residential construction reached over 2 million tomans.
  • The number of residential construction transactions increased by 15.8% compared to last summer.

💡 Why It Matters

🇮🇷 For Iran: The significant rise in construction prices and rental costs exacerbates the financial strain on urban households, which already allocate a large portion of their budget to housing.
🌍 Regional: This trend may influence regional economic stability and migration patterns as people seek affordable living conditions.
🌐 International: International observers may view this as a reflection of Iran's economic challenges, potentially affecting foreign investment and relations.

📚 Background

Iran's housing market has been under strain due to economic sanctions and inflation, leading to increased costs and decreased affordability for many families.

Iranian housing market trends Economic impact of sanctions on Iran
📡 Source: NEUTRAL
📊 Confidence: 70%
The article relies on data from official Iranian statistical sources, which are generally considered reliable but may reflect government perspectives.

The average price of one square meter of residential construction in urban areas of Iran reached over 2 million and 226 thousand tomans this summer, marking a 44.4% increase compared to last summer. The average price per square meter of residential construction in urban areas of Iran also showed a 14.9% increase compared to spring of this year. According to a report by the Statistical Center of Iran, the average price of one square meter of land or residential building land in all urban areas of Iran also rose by 49.2% compared to last summer, reaching over 1 million and 725 thousand tomans. The average price of each square meter of land or dilapidated building land experienced a 29% increase compared to the previous season, i.e., spring of this year. A noteworthy point in this report from the Statistical Center of Iran, which is based on data from the Iranian Real Estate Transaction Management Information System, is the simultaneous growth in the number of transactions for buying and selling residential construction and land this summer compared to last summer. Accordingly, the number of residential construction transactions in summer 97 (Persian calendar) increased by 15.8% compared to last summer, and the number of transactions for land or dilapidated residential buildings saw a 41.9% increase compared to summer 96. According to the Central Bank of Iran's report, the number of transactions in the Tehran housing market has decreased in recent months. Comparing the results of these two reports indicates that transactions in the housing market remain active in urban areas of Iran outside the capital. Based on the Central Bank's report on the Tehran housing market in November of this year, although the average price of one square meter of residential construction in the capital increased by over 60% compared to the same period last year, surpassing 7 million and 280 thousand tomans, the number of transactions during this period decreased by nearly 20% compared to the first eight months of 1396 (Persian calendar), reaching just over 91 thousand transactions. In another section of the report, the Statistical Center of Iran addressed changes in the rental price index in urban areas of Iran during this summer. Accordingly, the average monthly rent plus a 3% deposit for renting one square meter of residential construction in summer 97 exceeded 10 thousand tomans, reflecting a 26% increase compared to last summer. According to the Statistical Center of Iran's report on the budget and expenses of urban households, on average, 43% of the total non-food expenditure basket of each urban household is allocated to housing costs.

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Translated from the original and edited for English readers. View original source →

Translation confidence: 85%

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