Economy & Housing
Iranian President Hassan Rouhani officially launched the government’s National Action Plan for Construction and Supply of Housing on Tuesday, inaugurating a project for constructing 110,000 affordable housing units.
Speaking in the inauguration ceremony which was held in Tehran, Rouhani also issued directives for the start of construction operations in several other provinces including Khorasan Razavi, South Khorasan, Isfahan, Hormozgan and Chaharmahal-Bakhtiari.
The National Action Plan for Construction and Supply of Housing aims to construct 400,000 small and medium-size apartments (70-100 square meters in size) across the country and particularly in Tehran, where housing prices have risen most sharply.
Of the total number of homes, about half will be constructed in Tehran’s suburban “new towns” such as Parand and Pardis, respectively located in the west and east of the city.
According to Iran's Minister for Transport and Urban Development Mohammad Eslami, the government is hoping to complete the new units by April 2021.
While the ministry will provide the land for the new developments, it will only supervise construction, enlisting private sector construction firms who will bid for contracts that entitle them to receive state loans and subsidized building materials.
As reported, the government’s investment in construction will help create new jobs across the country and is expected to boost wages among laborers.
Providing housing to low-income families could also help alleviate economic hardship, especially if government’s assistance can help inflation-hit renters become homeowners.