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The Heavy Cost of Free Land

52 min ago September 17, 2026 2 min read 📰 Donya-e-Eqtesad
📋 Key Takeaway

The Iranian government continues to struggle with converting free land into affordable housing, facing delays and infrastructure challenges. The 99-year land lease concept has not led to the expected outcomes, resulting in long waiting times for residents. This situation highlights the inefficiencies in urban planning and housing policy in Iran.

🔍 Quick Context Guide
💡 Bottom Line: The failure to effectively utilize free land for housing highlights systemic issues in Iran's urban planning and governance.

👥 Key Players

Iranian Government MENTIONED
Policy Maker
"Responsible for housing policies and urban planning, impacting millions of citizens."
Mehr Housing Project MENTIONED
Housing Initiative
"A significant government program aimed at providing affordable housing through land leases."
Municipalities MENTIONED
Local Government Entities
"Tasked with urban planning and infrastructure development, crucial for the success of housing projects."

📰 What Happened

The Iranian government continues to struggle with converting free land into affordable housing, facing significant delays and infrastructure challenges. The initial promise of 99-year land leases for housing has not materialized as expected, leading to long waiting times for residents.

  • 97% of allocated lands for housing are outside main city limits.
  • An estimated 3000 trillion tomans is needed to develop infrastructure for these lands.

💡 Why It Matters

🇮🇷 For Iran: The inefficiencies in housing policy contribute to urban discontent and exacerbate housing crises.
🌍 Regional: Challenges in housing and urban development may affect regional stability and migration patterns.
🌐 International: International observers may view these issues as indicative of broader governance challenges in Iran.

📚 Background

Iran has long faced housing shortages, prompting government initiatives like the Mehr housing project to provide affordable options. However, bureaucratic inefficiencies and lack of infrastructure have hindered progress.

Urban Planning in Iran Housing Crisis in Iran
📡 Source: NEUTRAL
📊 Confidence: 70%
The article presents an analysis of government policies without overt bias, focusing on factual outcomes.

The promise-making machine with 'raw government lands', after multiple failures in quickly converting these seemingly free lands into affordable housing, continues its course. Two decades ago, the idea of '99-year land leases' for housing construction was proposed, and lands outside city limits were distributed among the people under the guise of 'removing land costs from housing prices' in the form of Mehr housing; however, it took years for the initial construction possibilities on them to be realized. Contrary to the designers' expectations, the Mehr housing lands required 'fundamental credit, technical capacity, and a long time for preparation' before construction could begin. Today, both the 20 years of experience in constructing and completing Mehr housing, the dormitory conditions in new cities such as Parand, and the imbalanced progress of the national housing plan serve as three lessons from the reality of 'free land'. When policymakers reduce urban construction to housing production, the result is years of waiting and running around for the completion of raw lands. Currently, the speed of house construction in the national housing plan is at least twice the speed of providing infrastructure for these lands; the reason is that about 97% of the lands allocated to the plan are outside the main city limits and were considered as 99-year raw lands for housing construction through annexation or boundary expansion. These lands, with a cumulative area equivalent to 'one Tehran', require about 3000 trillion tomans at the beginning of this year to complete the preparation and provision of full infrastructure (water, electricity, and gas) and also urban services; an amount that is 2 to 5 times the budget deficit of the country for 1405. The natural process of forming cities where governments do not intervene is a long process accompanied by investments from municipalities and the private sector for various facilities and services, rather than constructing housing first and then addressing urban services as seen in the directive model of building Parand, Hashtgerd, and other new cities. With the current living standards in a place like Parand, it will take about 100 years for the city to escape the trap of '99-year land' and reach the status of a 'real city'.

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

Translation confidence: 85%

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