Construction industry of Iran
[1] In recent years, the construction industry has been thriving due to an increase in national and international investment to the extent that it is now the largest in the Middle East region.
The Central Bank of Iran indicate that 70 percent of the Iranians own homes, with huge amounts of idle money entering the housing market.
The collapse of state authority, coupled with the populist convictions of the new regime and spontaneous popular land occupations labeled as "revolutionary housing", led to the dramatic expansion of cities.
Tehran doubled in size within two years, and Ahvaz tripled in area from 23 to 75 square kilometres (9 to 29 sq mi).
From 1979 to 1993 nearly half a million hectares of predominantly public unoccupied land was converted into private and cooperative residential property.
New state institutions like the Urban Land Organization and the Housing Foundation played the key role in this massive transfer of property.
[8] This large-scale transfer of mostly public land, coupled with the absence of enforceable regulation, transformed Iran’s urban geography.
Between 1979 and 1982, 75 percent of all new construction in Tehran occurred outside the formal city limits, where satellite villages were transformed into sprawling suburbs.
The state merely transferred the public land into private hands; its share of investment in housing construction (affordable or otherwise) was less than 2 percent of the total after the revolution.
[12] The Central Bank of Iran indicate that 70 percent of the Iranians own homes, with huge amounts of idle money entering the housing market.
[17][18] Under this scheme real estate developers are offered free lands in return for building cheap residential units for first-time buyers on 99-year lease contracts.
The government then commissioned agent banks to offer loans to the real estate developers to prepare the lands and begin construction projects in an attempt to increase production and create equilibrium in the supply and demand curve (2008).
[21] While most Iranians have difficulties obtaining small home loans, 90 persons have managed to secure collective facilities totaling $8 billion from banks.
The government of President Rouhani announced that by 2017 the Mehr housing project will be replaced with cheap loans to needy families with the stated objective to build only 150,000 homes on a yearly basis.
[25] As of 2016, main mortgage lenders in Iran are:[22] housing of the whole country Iranian contractors have been awarded several foreign tender contracts in different fields of construction of dams, bridges, roads, buildings railroads, power generation, and gas, oil and petrochemical industries.
The availability of local raw materials, rich mineral reserves, experienced manpower have all collectively played crucial role in winning the international bids.
