Iran: 5m New Homes Needed by 2027

Financial Tribune - Iran will need to build more than five million new homes in the next decade to fulfill its household requirements, the deputy for housing at the Ministry of Roads and Urban Development said.

Hamed Mazaherian made the statement in his speech at the two-day Fifth National Conference on Applied Research in Civil Engineering, Architecture and Urban Management that commenced on Wednesday at Milad Tower in Tehran.

"For the next 10 years, we must create homes for 29 million people … Research and data currently tell us that we will need about 5.3 million homes for the newlyweds in the next 10 years," he was quoted as saying by the MRUD news portal.

As Mazaherian noted at the event, the latest census showed 24 million households are residing in the country, while Iran has 27 million homes, although 2.6 million of them are vacant and 2.1 million are second homes used occasionally during the year.

The fact that 19 million people are living in poor housing conditions even as millions of homes are empty is indicative of an acute "lack of balance" in the housing market, the deputy minister added.

In addition to the new homes, Mazaherian said about 3.8 million residential units must be reinforced which, presuming a 5.4% economic growth rate and a 2% population growth rate, will bring the grand total of homes needed to more than nine million by the end of the fiscal 2026-27.

He predicted that about half –1.3 million–of all the empty homes that are mostly luxurious units beyond the purchasing power of a majority of people will also be occupied by that time, proving helpful to the total housing requirements of the country.

Date : Saturday 6 January 2018 / Subject : Economic News / Source : Financial Tribune