Real Estate - Iran | Statista Market Forecast

The Real Estate market market in Iran is forecasted to reach a value of US$3.36tn by 2024.
Within this market, the Residential Real Estate segment holds the largest share with a projected market volume of US$2.68tn in 2024.
It is expected to experience a compound annual growth rate (CAGR 2024-2029) of 2.70%, resulting in a market volume of US$3.83tn by 2029.
In comparison to other countries, United States is expected to generate the highest value in the Real Estate market market, reaching US$132.0tn in 2024.
The real estate market in Iran is experiencing a surge in demand due to the recent easing of economic sanctions.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Iran has been experiencing significant growth and development in recent years.

Customer preferences: Iranians have traditionally shown a strong preference for investing in real estate. This is due to several factors, including the lack of alternative investment options, the cultural significance of property ownership, and the perception of real estate as a safe and stable investment. Additionally, many Iranians view real estate as a means of preserving wealth and passing it on to future generations.

Trends in the market: One of the key trends in the Iranian real estate market is the increasing demand for residential properties. This is driven by a growing population, urbanization, and changing demographics. As more people move to cities in search of better job opportunities and a higher standard of living, the demand for housing has soared. This has led to a surge in residential construction projects and a rise in property prices. Another trend in the market is the growing interest in commercial real estate. With the expansion of the Iranian economy and the opening up of the country to foreign investment, there has been a significant increase in demand for office spaces, retail outlets, and industrial properties. This trend is expected to continue as more businesses enter the market and seek to establish a presence in Iran.

Local special circumstances: One of the unique features of the Iranian real estate market is the dominance of cash transactions. Due to economic sanctions and restrictions on international banking, many Iranians prefer to conduct real estate transactions in cash. This has created a cash-driven market, with limited access to mortgage financing. As a result, property prices have been driven up by the availability of cash buyers, leading to concerns about affordability and accessibility for first-time buyers.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the real estate market in Iran. Firstly, the lifting of economic sanctions in 2016 has opened up the country to foreign investment and increased economic activity. This has stimulated demand for real estate, particularly in the commercial sector. Secondly, Iran's young and growing population has created a strong demand for housing. With a median age of around 31 years, many Iranians are entering the prime age for household formation and homebuying. This demographic trend is expected to continue driving demand for residential properties in the coming years. Lastly, government policies and incentives have played a role in the growth of the real estate market. The Iranian government has implemented measures to encourage investment in the sector, including tax breaks and incentives for developers. These policies have attracted both local and foreign investors, further driving growth in the market. In conclusion, the Real Estate market in Iran has experienced significant growth and development in recent years, driven by customer preferences for real estate investment, increasing demand for residential and commercial properties, unique cash-driven transactions, and underlying macroeconomic factors such as the lifting of economic sanctions, a young and growing population, and government policies and incentives.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Real Estate - Iran

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