Residential Real Estate Leases - Iran

In Iran, the Residential Real Estate Leases market market is anticipated to witness a significant growth in the coming years.
According to projections, the revenue of this market is expected to reach US$48.90bn in 2024.
Among the various segments of the market, Apartment Leases stands out as the dominant player, with a projected market volume of US$32.41bn in the same year.
Looking ahead, the market is foreseen to exhibit a steady annual growth rate (CAGR 2024-2029) of 5.64%.
This growth trajectory is predicted to result in a market volume of US$64.34bn by 2029.
The demand for residential real estate leases in Iran has been steadily increasing due to the recent economic reforms and the growing urban population.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The residential real estate leases market in Iran is experiencing significant development and growth.

Customer preferences: Customer preferences in the residential real estate leases market in Iran are influenced by several factors. One of the key preferences is for affordable housing options. As the cost of living continues to rise, many individuals and families are seeking more affordable rental options. Additionally, there is a growing demand for properties with modern amenities and convenient locations. Customers are increasingly looking for properties that offer easy access to transportation, schools, and other essential services.

Trends in the market: One of the prominent trends in the residential real estate leases market in Iran is the increasing popularity of short-term rentals. This trend is driven by the rise of online platforms that connect property owners with potential tenants. Short-term rentals provide flexibility for both landlords and tenants, allowing landlords to maximize their rental income and tenants to have more options when it comes to their housing needs. This trend is particularly popular in major cities where there is a high demand for temporary accommodation, such as for business travelers or tourists. Another trend in the market is the growing interest in sustainable and eco-friendly housing options. As awareness about environmental issues increases, there is a rising demand for properties that are energy-efficient and utilize sustainable building materials. This trend is driven by both customer preferences and government initiatives to promote sustainable development in the real estate sector.

Local special circumstances: There are several local special circumstances that are influencing the development of the residential real estate leases market in Iran. One of the key factors is the country's young population. With a large percentage of the population being under the age of 35, there is a high demand for rental properties. Many young Iranians are delaying marriage and starting families, which has led to an increased demand for affordable rental housing options. Additionally, the recent easing of sanctions has opened up opportunities for foreign investment in the real estate sector. This has led to an influx of foreign capital and expertise, which has contributed to the development of the market. The government has also implemented policies to attract foreign investors, such as providing tax incentives and streamlining the process for obtaining permits and licenses.

Underlying macroeconomic factors: Several underlying macroeconomic factors are driving the development of the residential real estate leases market in Iran. One of the key factors is the country's strong economic growth. Iran has experienced significant economic expansion in recent years, which has led to an increase in household income and purchasing power. This has resulted in a higher demand for rental properties as more individuals and families are able to afford housing. Another factor is the urbanization trend in Iran. As more people move to cities in search of better job opportunities and a higher standard of living, the demand for rental properties in urban areas has increased. This trend is expected to continue as the country's population continues to grow and urbanization rates rise. In conclusion, the residential real estate leases market in Iran is developing and growing due to customer preferences for affordable housing, the popularity of short-term rentals, and the demand for sustainable housing options. Local special circumstances, such as the young population and the easing of sanctions, are also contributing to the market's development. Underlying macroeconomic factors, including strong economic growth and urbanization, are driving the demand for rental properties in Iran.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

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

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate Leases - Iran

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Contact

Get in touch with us. We are happy to help.

Residential Real Estate Leases - Iran

In-Scope

Out-Of-Scope

Related markets:

Residential Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts