As Iran’s housing crisis worsens, new reports reveal staggering figures behind government land ownership and the soaring costs of real estate. According to state media, the National Land and Housing Organization, which operates under the Ministry of Roads and Urban Development, currently holds 1.8 million hectares of land in urban areas—equivalent to land sufficient to build nearly 30 cities the size of Tehran. Despite this vast inventory, many Iranians face an almost unattainable dream of homeownership due to skyrocketing housing prices and stagnant wages.
“The National Land and Housing Organization holds double the total area of residential land in the entire country,” admitted Mohammad Bagher Ghalibaf, Speaker of the regime’s Parliament, during a recent event. Ghalibaf, known as one of Iran’s most corrupt officials and a top figure in state land deals while serving as Tehran’s mayor, made this statement not out of empathy for the people’s struggles but seemingly out of fear of mounting public outrage. Despite Ghalibaf’s remarks, officials often deflect blame for the housing crisis, claiming a “shortage of land” impedes housing development.
Current statistics highlight the scale of the crisis: average housing prices in Tehran have surged to over 120 million tomans per square meter, making it exceedingly difficult for the average family to afford even the most modest home. The Ministry of Roads and Urban Development’s monopoly over large tracts of land has pushed housing costs beyond the reach of most Iranians, who spend a disproportionate portion of their income on housing expenses. Recent data from Iran’s Central Bank showed that the share of housing costs in household expenses now exceeds 55% in Tehran Province alone, while global standards suggest it should be no more than 30%.
Kazem Sedighi, A Khamenei Ally, Exposed to Have Grabbed Billions Worth of Land in #Iran's Capitalhttps://t.co/CmbzjfHMsP pic.twitter.com/cze9r5g7rI
— NCRI-FAC (@iran_policy) March 18, 2024
The inflationary pressure on Iran’s real estate market reflects a pattern of restrictive land policies and limited housing production. Between 2013 and 2016, building permits in urban areas dropped to levels not seen since the early 2000s, deepening the gap between supply and demand. In the past decade alone, Iran’s housing market has experienced twelve major price spikes, with rental rates tripling since the start of the decade. This has forced many families into financial hardship, leading to a significant migration toward suburban and remote areas.
The government’s focus on “productive assets plans” to sell surplus land and properties has sparked significant debate. In January, Hossein Raghfar, a state-affiliated economist, warned that Iran’s privatization efforts have mostly benefited insiders rather than the public, suggesting that the new plan would “auction off public wealth for the benefit of a few.” The Islamic Revolutionary Guard Corps (IRGC), which already dominates Iran’s economy, stands to gain further from these privatization efforts, raising concerns over transparency and public benefit.
The recently leaked documents expose the Iranian regime's favoritism towards the #IRGCterrorists under President Raisi's administration. Land transfers, funding requests – it's clear where the regime's #priorities lie.https://t.co/BQR3mVPIC7
— NCRI-FAC (@iran_policy) June 11, 2023
As the situation worsens, housing experts highlight that breaking the government’s stranglehold on land could theoretically stabilize prices and address housing needs for millions. According to estimates, releasing even a small fraction of the Ministry’s urban land holdings could make a meaningful impact on housing availability. However, expectations for reform remain virtually non-existent under a regime that has consistently prioritized its own interests over those of the public.
This vast monopoly on land, rather than signaling any hope for resolution, is fueling growing public outrage. Far from implementing policies to address the housing crisis, the Ministry of Roads and Urban Development continues to expand its grip on urban land, driving up prices and adding to the flames of frustration. Many Iranians are now calling for accountability as the regime’s wealth-hoarding practices intensify economic pressures on households struggling to afford basic living expenses.
