Construction in Iran
Encyclopedia
In recent years, the construction
industry of Iran 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 annual turnover
in the construction industry amounts to US$38.4 billion. The real estate sector contributed to 5% of GDP in 2008. Statistics from March 2004 to March 2005 put the number of total Iranian households at 15.1 million and the total number of dwelling units at 13.5 million, signifying a demand for at least 5.1 million dwelling units. Every year there is a need for 750,000 additional units as young couples embark on married life.
At present, 2000 units are being built every day although this needs to increase to 2740 units. In addition, Iran’s geographical position over a seismic belt necessitates the reinforcement and renovation
of housing. This is possible only through a boom in real-estate development and foreign investment
.
For a decade after the revolution
, the land question, especially in cities, was among the most contested issues in the Islamic Republic. 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 9 to 29 square miles (75.1 km²). But only a small fraction of this geographic expansion was confiscated private land. The rest, more than 90 percent of the total distributed, had been public land. 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. By the mid-1980s more than 60 percent of all urban residential land transactions were being allocated by the state.
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. Remarkably, by 1986 urban housing stock had doubled, as Housing Ministry surveys showed that more than half of all urban dwellings in the entire country had been built after the revolution. It was private individuals who built these 2.3 million new units. 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.
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 housing industry is one of the few segments of the Iranian economy where state capital shares as little as two per cent of the market, and the remaining 98 per cent is private sector
investment. There is little red tape or hurdles and, as a result, through launching mass development projects, the use of new technologies and fast-pace project execution, a larger portion of the housing market is accessible. This is also true for new construction materials and technological advances.
Around 3 to 6 percent of housing units constructed yearly are solely for renting purposes. Around 20 percent of housing units in urban areas are rented. The average annual increase in house prices has been around 20 percent over the past ten years with a peak reached between 2006 and 2008. The average size of housing units has been around 80 square meters over the past five years.At present, the average price of a housing unit in urban areas is about 10 times the annual income of an urban household. Average construction cost for 1m² of urban residential buildings in the first half of 2008 was $350 dollars.
In 2011, Iran implemented a national electronic system for the registration and tracking of real estate transactions in order to bring more transparency to the market (97% of real estate transactions and ownership changes have been recorded in the new system).
has given loans up to 102 trillion rials ($10.2 billion) to applicants of Mehr housing project. 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). Close to 400,000 units have been built and permits have been issued for another 12,000. Mehr Housing project is expected to provide 600,000 residential units in its first phase. About 3.7 million people have so far registered for Mehr Housing Plan (2008). About 10 million rials
is to be paid by applicants for preparing the land and another 10 million to be given by the government in the form of banking facilities. Applicants should pay about 20 percent of the construction costs. In addition, about 140 million rials worth of housing loans will be granted to them (10,000 rials=1 USD in 2008). While most Iranians have difficulties obtaining small home loans, 90 persons have managed to secure collective facilities totaling $8 billion from banks.
of old buildings is one of the priorities for the Government of Iran. Estimates show that about US$143 billion needs to be allocated in the next 10 years for restoration of 14,000 meters of critically decaying buildings. The government will earmark 11.5 percent of the funding while the rest will be supplied by public investment and bank loans (2007). The refurbishment of aged buildings nationwide has increased to $6.3 billion in 2010 from $3.3 billion in 2009. Another avenue for restoration in light of the new energy subsidy reform is to make housing more energy efficient in terms of heating.
's real estate prices increasing by about 1,500-2,000% [sic] over the last 10 years), resulting in a highly overvalued currency and damaging Iran's competitiveness.
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 man power have all collectively played crucial role in wining the international bids.
or Europe
an, have established agents in Iran or partnerships with domestic manufacturers, both investing directly in the housing market and targeting other Persian Gulf
markets.
The Iran construction market is potentially ripe for the import of construction material to accommodate local demands.
According to the statistics presented by the Iran Imports Book, which is published by the Islamic Republic of Iran Customs Office, Iran’s major imported items in 2003 included:
Other imported items are: glass
, timber
flooring
, lighting
, paint, electrical and electronic
fittings and accessories, lock
, key hardware and aluminum for façade design.
certification in order to export to Iran. European Union standards (EN, BSI, DIN, ANFOR, UNI, NNI, ON, IBN, IPQ, DS, NSF, SEE, SIS, NSAI, ELOT), North America National standards (ANSI, ASTM, AGI, API), Japan National Standard (JIS) and International Standards (ISO, CODEX, ITU, IEC) are also accepted in order to export to Iran.
Further information is available from the Institute of Standards and Industrial Research of Iran
.
Sepcialized reports
Videos
Construction
In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...
industry of Iran 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
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far 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 annual turnover
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
in the construction industry amounts to US$38.4 billion. The real estate sector contributed to 5% of GDP in 2008. Statistics from March 2004 to March 2005 put the number of total Iranian households at 15.1 million and the total number of dwelling units at 13.5 million, signifying a demand for at least 5.1 million dwelling units. Every year there is a need for 750,000 additional units as young couples embark on married life.
At present, 2000 units are being built every day although this needs to increase to 2740 units. In addition, Iran’s geographical position over a seismic belt necessitates the reinforcement and renovation
Renovation
Renovation is the process of improving a structure. Two prominent types of renovations are commercial and residential.-Process:The process of a renovation, however complex, can usually be broken down into several processes...
of housing. This is possible only through a boom in real-estate development and foreign investment
Foreign Direct Investment in Iran
Foreign direct investment in Iran has been hindered by unfavorable or complex operating requirements and by international sanctions, although in the early 2000s the Iranian government liberalized investment regulations. Iran ranks 62nd in the World Economic Forum's 2011 analysis of the global...
.
History
Iranian Revolution
The Iranian Revolution refers to events involving the overthrow of Iran's monarchy under Shah Mohammad Reza Pahlavi and its replacement with an Islamic republic under Ayatollah Ruhollah Khomeini, the leader of the...
, the land question, especially in cities, was among the most contested issues in the Islamic Republic. 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
Tehran
Tehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to...
doubled in size within two years, and Ahvaz
Ahvaz
-History:For a more comprehensive historical treatment of the area, see the history section of Khūzestān Province.-Ancient history:Ahvaz is the anagram of "Avaz" and "Avaja" which appear in Darius's epigraph...
tripled in area from 9 to 29 square miles (75.1 km²). But only a small fraction of this geographic expansion was confiscated private land. The rest, more than 90 percent of the total distributed, had been public land. 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. By the mid-1980s more than 60 percent of all urban residential land transactions were being allocated by the state.
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. Remarkably, by 1986 urban housing stock had doubled, as Housing Ministry surveys showed that more than half of all urban dwellings in the entire country had been built after the revolution. It was private individuals who built these 2.3 million new units. 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.
Market
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
investment. There is little red tape or hurdles and, as a result, through launching mass development projects, the use of new technologies and fast-pace project execution, a larger portion of the housing market is accessible. This is also true for new construction materials and technological advances.
| Metropolis | Average price for the 2nd half of 2007 | Cyclic growth rate |
|---|---|---|
| Tehran Tehran Tehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to... |
1,515 | 24.1 |
| Mashhad Mashhad Mashhad , is the second largest city in Iran and one of the holiest cities in the Shia Muslim world. It is also the only major Iranian city with an Arabic name. It is located east of Tehran, at the center of the Razavi Khorasan Province close to the borders of Afghanistan and Turkmenistan. Its... |
585 | 23.3 |
| Esfahan | 680 | 22.6 |
| Tabriz Tabriz Tabriz is the fourth largest city and one of the historical capitals of Iran and the capital of East Azerbaijan Province. Situated at an altitude of 1,350 meters at the junction of the Quri River and Aji River, it was the second largest city in Iran until the late 1960s, one of its former... |
448 | 21.8 |
| Shiraz Shiraz Shiraz may refer to:* Shiraz, Iran, a city in Iran* Shiraz County, an administrative subdivision of Iran* Vosketap, Armenia, formerly called ShirazPeople:* Hovhannes Shiraz, Armenian poet* Ara Shiraz, Armenian sculptor... |
447 | 21.6 |
| Karaj Karaj Karaj is a city in and the capital of Karaj County, Alborz Province, Iran. At the 2006 census, its population was 1,377,450, in 385,955 families, , making it the fifth-largest city in Iran after Tehran, Mashhad, Isfahan and Tabriz.) It is situated west of Tehran, at the foothills of the Alborz... |
657 | 23.1 |
Around 3 to 6 percent of housing units constructed yearly are solely for renting purposes. Around 20 percent of housing units in urban areas are rented. The average annual increase in house prices has been around 20 percent over the past ten years with a peak reached between 2006 and 2008. The average size of housing units has been around 80 square meters over the past five years.At present, the average price of a housing unit in urban areas is about 10 times the annual income of an urban household. Average construction cost for 1m² of urban residential buildings in the first half of 2008 was $350 dollars.
In 2011, Iran implemented a national electronic system for the registration and tracking of real estate transactions in order to bring more transparency to the market (97% of real estate transactions and ownership changes have been recorded in the new system).
Mehr Housing Scheme
As of January 2011, the banking sector, particularly Bank MaskanBank Maskan
Bank Maskan , also known as the Housing Bank, is a bank in Iran. In 2008, the Central Bank banned all banks and other financial institutions, except for Maskan Bank, from providing residential mortgages.-Structure:Their subsidiaries include:...
has given loans up to 102 trillion rials ($10.2 billion) to applicants of Mehr housing project. 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
Supply and demand
Supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers will equal the quantity supplied by producers , resulting in an...
curve (2008). Close to 400,000 units have been built and permits have been issued for another 12,000. Mehr Housing project is expected to provide 600,000 residential units in its first phase. About 3.7 million people have so far registered for Mehr Housing Plan (2008). About 10 million rials
Iranian rial
The rial is the currency of Iran. It is subdivided into 100 dinar but, because of the very low current value of the rial, no fraction of the rial is used in accounting....
is to be paid by applicants for preparing the land and another 10 million to be given by the government in the form of banking facilities. Applicants should pay about 20 percent of the construction costs. In addition, about 140 million rials worth of housing loans will be granted to them (10,000 rials=1 USD in 2008). While most Iranians have difficulties obtaining small home loans, 90 persons have managed to secure collective facilities totaling $8 billion from banks.
Restorations
RestorationBuilding restoration
Building restoration describes a particular treatment approach and philosophy within the field of architectural conservation. According the U.S...
of old buildings is one of the priorities for the Government of Iran. Estimates show that about US$143 billion needs to be allocated in the next 10 years for restoration of 14,000 meters of critically decaying buildings. The government will earmark 11.5 percent of the funding while the rest will be supplied by public investment and bank loans (2007). The refurbishment of aged buildings nationwide has increased to $6.3 billion in 2010 from $3.3 billion in 2009. Another avenue for restoration in light of the new energy subsidy reform is to make housing more energy efficient in terms of heating.
Real estate investment
In terms of investment, the domestic rival markets of real estate market are gold, car and the Iranian bourse. Construction is one of the most important sectors in Iran accounting for 20–50% of the total private investment. One of the prime investment targets of well off Iranians as tangible. In Iran, only government employees pay their fair share of income taxes and no one pays a capital gains tax, which has allowed the rich to "squirrel away" their speculative real estate gains abroad. Prices for imported goods have increased somewhat along with global inflation but prices of non-tradables have increased at a much faster rate (with TehranTehran
Tehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to...
's real estate prices increasing by about 1,500-2,000% [sic] over the last 10 years), resulting in a highly overvalued currency and damaging Iran's competitiveness.
Facts & figures
| Source: Ministry of Housing & Urban Development Ministry of Housing and Urban Development (Iran) The Ministry of Housing and Urban Development was an Iranian government body responsible for the oversight of Construction industry in Iran. In June 2011, Ministry of Housing and Urban Development and the Ministry of Roads and Transportation was marged and estabilished Ministry of Transportation... |
(2006-2007) |
|---|---|
| No. of Household | 17.5 million |
| Housing stock | 15.97 million units |
| Amount of investment in the housing of the whole country |
21 billion dollars |
| Housing share of total capital formation | 25-35% |
| Housing share of GDP | 5.6% |
| Investment return | 30% |
| Housing share of total employment | 13% |
| Average annual demand for housing for the next 5 years | 1.2 millions Units |
| Production of housing | 838,000 units |
| Housing production per 1000 person | 1.2 units |
Housing
- 2003: 60 mil. square meter of buildings have been constructed
- Construction is mainly concentrated on urban areaUrban areaAn urban area is characterized by higher population density and vast human features in comparison to areas surrounding it. Urban areas may be cities, towns or conurbations, but the term is not commonly extended to rural settlements such as villages and hamlets.Urban areas are created and further...
s and TehranTehranTehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to... - 2003: approx. 170,000 new urban construction projects. Close to 3 percent of houses built inside the country are prefabricated.
- 2003: investment of $3.6 bn into urban housing
- 2003: Housing Bank: US$ 1.3 bn for 217,000 loans
- Business Monitor International (BMI) forecasting a compound annual growth rate of 12.2 percent for 2008-2013. One of the main reasons for this growth is that there remains a severe shortage of housing stock in Iran wherein demand stands at around 1.5 million housing units per year, while only around 700,000 units are completed each year.
Industry
- 2003: 9,000 establishment permitPermitPermit may refer to:*Permit *Various legal licenses:*License*Work permit*Learner's permit*Permit to travel*Construction permit*Home Return Permit*One-way Permit*Permit is the common name for the Trachinotus falcatus, a type of Pompano....
s for new industrial units plus expansion; - 2003: 3,236 operation permits;
Iranian contractors have been awarded several foreign tender contracts in different fields of construction of dams, bridges, roads, buildings railroads
Islamic Republic of Iran Railways
The Islamic Republic of Iran Railways is the national state-owned railway system of Iran. is an associate of the IR and manages its passenger trains including international trains between Tehran and Istanbul and Tehran and Damascus...
, power generation, and gas, oil
National Iranian Oil Company
The National Iranian Oil Company , a government-owned corporation under the direction of the Ministry of Petroleum of Iran, is an oil and natural gas producer and distributor headquartered in Tehran. It was established in 1948...
and petrochemical
National Iranian Petrochemical Company
The National Iranian Petrochemical Company , a subsidiary to the Iranian Petroleum Ministry, is owned by the government of the Islamic Republic of Iran. It is responsible for the development and operation of the country's petrochemical sector. Founded in 1964, NIPC began its activities by operating...
industries. The availability of local raw materials, rich mineral reserves
Mining in Iran
Mining in Iran is under-developed. Yet the country is one of the most important mineral producers in the world, ranked among 15 major mineral rich countries, holding some 68 types of minerals, 37 billion tonnes of proven reserves and more than 57 billion tonnes of potential reservoirs....
, experienced man power have all collectively played crucial role in wining the international bids.
Government
- Development budget 2004: $ 6.7bn (US$ 3bn construction, US$ 1.7bn machinery, US$ 2bn Others)
- Iran is among the world's largest dam builders.
Construction Materials
Part of the material is supplied by traditional markets such as the Tehran-based grand markets of iron and cement.- 2003: 27mil. MT cementCementIn the most general sense of the word, a cement is a binder, a substance that sets and hardens independently, and can bind other materials together. The word "cement" traces to the Romans, who used the term opus caementicium to describe masonry resembling modern concrete that was made from crushed...
(2mil. MT export), steelSteelSteel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
, tiles, stonesMasonryMasonry is the building of structures from individual units laid in and bound together by mortar; the term masonry can also refer to the units themselves. The common materials of masonry construction are brick, stone, marble, granite, travertine, limestone; concrete block, glass block, stucco, and...
, fixturesFixturesA fixture is a legal concept that includes any physical property that is permanently attached or fixed to real property which once removed will cause [permanent] damage to the real property, usually land. If the property is not affixed to real property it is considered chattel property...
, etc. As of 2010, Iran was the 5th cement producer in world. Some 280 million square meters of tile and ceramic were produced in 2010.
- According to the Industries and Mines Ministry, the current cement production in 2006/07 is over 40 million ton which 13.5% increased comparing with 2005/06. As of March 2010, Iran’s total nominal production capacity stood at 62 million tonnes. Iran reached self-sufficiency in cement production in 2009. Iran now produces 200,000 tons of cement per day and plans to export 25 million tons of cement per annum by 2010. There are 57 active production units in Iran. In 2011, The Ministry of Commerce ratified a 14% increase in the price ceiling for cement products, which will have the effect of supporting share prices of this industry in the future.
- The largest float glassFloat glassFloat glass is a sheet of glass made by floating molten glass on a bed of molten metal, typically tin, although lead and various low melting point alloys were used in the past. This method gives the sheet uniform thickness and very flat surfaces. Modern windows are made from float glass...
factory in the Middle East is located in Qazvin ProvinceQazvin ProvinceThe Qazvin Province is one of the 31 provinces of Iran. It is in the north-west of the country, and its center is the city of Qazvin. The province was created in 1993 out of part of Tehran Province and includes 20 cities: Qazvin, Takestan, Abyek, Buin-Zahra, Eqhbalieh, Mohammadieh, Alvand,...
and produces 120,000 square meters of glass from 1.2 to 19 millimeter thickness on a daily basis, or 180,000 tons of glass annually. 30 percent of the output is exported to Europe.
Problems
- 2003: Despite increase in budget: insufficient support of governmentGovernmentGovernment refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
- Specifically: lack of mass housing due to sharp increase of urban populationDemographics of IranIran's population increased dramatically during the later half of the 20th century, reaching about 75 million by 2011. In recent years, however, Iran's birth rate has dropped significantly. Studies project that Iran's rate of population growth will continue to slow until it stabilizes above 100...
- Lack of financial facilities
Latest development
- Government/municipalities taking active steps to encourage private and foreign investmentForeign Direct Investment in IranForeign direct investment in Iran has been hindered by unfavorable or complex operating requirements and by international sanctions, although in the early 2000s the Iranian government liberalized investment regulations. Iran ranks 62nd in the World Economic Forum's 2011 analysis of the global...
- Introduction of housing bondsBond (finance)In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
- Emphasis on private sector; governmental companies to large extent barred from urban housing projects
- Government puts main emphasis of unfinished projects: Some statistics put the number of unfinished projects across Iran at about 50,000.
- Reform of technical standards & regulations
- Better statisticsStatisticsStatistics is the study of the collection, organization, analysis, and interpretation of data. It deals with all aspects of this, including the planning of data collection in terms of the design of surveys and experiments....
& transparencies
Opportunities for foreign companies
Thousands of foreign firms, mainly ChineseChina
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
or Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an, have established agents in Iran or partnerships with domestic manufacturers, both investing directly in the housing market and targeting other Persian Gulf
Persian Gulf
The Persian Gulf, in Southwest Asia, is an extension of the Indian Ocean located between Iran and the Arabian Peninsula.The Persian Gulf was the focus of the 1980–1988 Iran-Iraq War, in which each side attacked the other's oil tankers...
markets.
- General: Iran has capable construction and engineering companies
- Mass housing. In 2010, five foreign companies from TurkeyTurkeyTurkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
and South KoreaSouth KoreaThe Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
have concluded contracts to build 40,000 houses in Iran in relation to the "Mehr national housing plan". Previously, companies from Malaysia and South KoreaSouth KoreaThe Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
have won development contracts under the Mehr Housing project. - New technology
- Large projects (damsDAMSDriot-Arnoux Motorsport is a racing team from France, involved in many areas of motorsports. DAMS was founded in 1988 by Jean-Paul Driot and former Formula One driver René Arnoux. It is headquartered near Le Mans, only 2 km from the Bugatti Circuit.- History :The year after its foundation,...
, tunnels, industrial projectsIndustry of IranAccording to a report by the Economist, Iran has been ranked 39th for producing $23 billion of industrial products in 2008. From 2008 to 2009 Iran has leaped to 28th place from 69th place in annual industrial production growth rate. A recent report by the World Fact Book ranks Iran 3rd among...
, oil industryPetroleum industry in IranIn 2004 Iran produced 5.1 percent of the world’s total crude oil , which generated revenues of US$25 billion to US$30 billion and was the country’s primary source of foreign currency. At 2006 levels of production, oil proceeds represented about 18.7 percent of gross domestic product . However, the...
). There are hundreds, perhaps thousands, of big tunnels in Iran. - Joint projects in IraqIraqIraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
, AfghanistanAfghanistanAfghanistan , officially the Islamic Republic of Afghanistan, is a landlocked country located in the centre of Asia, forming South Asia, Central Asia and the Middle East. With a population of about 29 million, it has an area of , making it the 42nd most populous and 41st largest nation in the world...
(past: limited extent in AzerbaijanAzerbaijanAzerbaijan , officially the Republic of Azerbaijan is the largest country in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to...
) - Construction related machinery
- Requirements: Foreign financing required (ECGD)
- Team up with local partnersBusiness partnerBusiness partner is a term used to denote a commercial entity with which another commercial entity has some form of alliance. This relationship may be a highly contractual, exclusive bond in which both entities commit not to ally with third parties...
required; local content
The Iran construction market is potentially ripe for the import of construction material to accommodate local demands.
According to the statistics presented by the Iran Imports Book, which is published by the Islamic Republic of Iran Customs Office, Iran’s major imported items in 2003 included:
- ironIronIron is a chemical element with the symbol Fe and atomic number 26. It is a metal in the first transition series. It is the most common element forming the planet Earth as a whole, forming much of Earth's outer and inner core. It is the fourth most common element in the Earth's crust...
and steelSteelSteel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
(iron slabs and steel, iron and steel bars, rolled iron and steel wares) - pre-fabricated buildings
- elevatorElevatorAn elevator is a type of vertical transport equipment that efficiently moves people or goods between floors of a building, vessel or other structures...
wares - block and tackle
- road-building machinery
- digging and excavationEarthworks (engineering)Earthworks are engineering works created through the moving or processing of quantities of soil or unformed rock.- Civil engineering use :Typical earthworks include roads, railway beds, causeways, dams, levees, canals, and berms...
machinery - cranesCrane (machine)A crane is a type of machine, generally equipped with a hoist, wire ropes or chains, and sheaves, that can be used both to lift and lower materials and to move them horizontally. It uses one or more simple machines to create mechanical advantage and thus move loads beyond the normal capability of...
- hygenic products made of plastic and china
- stonewares
- plasterPlasterPlaster is a building material used for coating walls and ceilings. Plaster starts as a dry powder similar to mortar or cement and like those materials it is mixed with water to form a paste which liberates heat and then hardens. Unlike mortar and cement, plaster remains quite soft after setting,...
and cementCementIn the most general sense of the word, a cement is a binder, a substance that sets and hardens independently, and can bind other materials together. The word "cement" traces to the Romans, who used the term opus caementicium to describe masonry resembling modern concrete that was made from crushed...
Other imported items are: glass
Glass
Glass is an amorphous solid material. Glasses are typically brittle and optically transparent.The most familiar type of glass, used for centuries in windows and drinking vessels, is soda-lime glass, composed of about 75% silica plus Na2O, CaO, and several minor additives...
, timber
Timber
Timber may refer to:* Timber, a term common in the United Kingdom and Australia for wood materials * Timber, Oregon, an unincorporated community in the U.S...
flooring
Flooring
Flooring is the general term for a permanent covering of a floor, or for the work of installing such a floor covering. Floor covering is a term to generically describe any finish material applied over a floor structure to provide a walking surface...
, lighting
Lighting
Lighting or illumination is the deliberate application of light to achieve some practical or aesthetic effect. Lighting includes the use of both artificial light sources such as lamps and light fixtures, as well as natural illumination by capturing daylight...
, paint, electrical and electronic
Electronics
Electronics is the branch of science, engineering and technology that deals with electrical circuits involving active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies...
fittings and accessories, lock
Lock (device)
A lock is a mechanical or electronic fastening device that is released by a physical object or secret information , or combination of more than one of these....
, key hardware and aluminum for façade design.
Industry standards
Manufacturers and suppliers are required to have ISO 9000ISO 9000
The ISO 9000 family of standards relates to quality management systems and is designed to help organizations ensure they meet the needs of customers and other stakeholders . The standards are published by ISO, the International Organization for Standardization, and available through National...
certification in order to export to Iran. European Union standards (EN, BSI, DIN, ANFOR, UNI, NNI, ON, IBN, IPQ, DS, NSF, SEE, SIS, NSAI, ELOT), North America National standards (ANSI, ASTM, AGI, API), Japan National Standard (JIS) and International Standards (ISO, CODEX, ITU, IEC) are also accepted in order to export to Iran.
Further information is available from the Institute of Standards and Industrial Research of Iran
Institute of Standards and Industrial Research of Iran
The Institute of Standards and Industrial Research of Iran is the Iranian governmental institution for standardization and certification...
.
See also
- Maskan Bank
- International rankings of Iran
- Economy of IranEconomy of IranThe economy of Iran is the eighteenth largest in the world by purchasing power parity and according to Iranian officials' claims is going to become the 12th largest by 2015. The economy of Iran is a mixed and transition economy with a large public sector and some 50% of the economy centrally planned...
- Banking and Insurance in Iran
- Iranian architectureIranian architectureIranian architecture or Persian architecture is the architecture of Iran . It has a continuous history from at least 5000 BCE to the present, with characteristic examples distributed over a vast area from Turkey to North India and the borders of China and from the Caucasus to Zanzibar...
- Transportation in Iran
- List of reservoirs and dams in Iran
- Water supply and sanitation in IranWater supply and sanitation in IranWater supply and sanitation in Iran has witnessed some important improvements, especially in terms of increased access to urban water supply, while important challenges remain, particularly concerning sanitation and service provision in rural areas....
- Earthquakes in IranEarthquakes in IranIran is one of the most seismically active countries in the world, being crossed by several major fault lines that cover at least 90% of the country. As a result, earthquakes in Iran occur often and are destructive.- Geology and history :...
- Health care in IranHealth care in IranHealth care in Iran and medical sector's market value was almost US $24 billion in 2002 and was forecast to rise to US $31 billion by 2007. With a population of almost 70 million, Iran is one of the most populous countries in the Middle East...
- Iranian Offshore Engineering and Construction CompanyIranian Offshore Engineering and Construction CompanyIranian Offshore Engineering and Construction Company is the first Iranian general contractor to the oil and gas industries. IOEC specializes in offshore engineering, procurement, construction, pipe coating, pipelaying, and installation of jackets, top sides, etc...
- IMIDROIMIDROIranian Mines and Mining Industries Development and Renovation Organization is a major holding company active in the mining sector in Iran...
- Khatam al-AnbiaKhatam al-AnbiaKhatam al-Anbia is an Iranian engineering firm controlled by the Iranian Revolutionary Guard Corps . The firm, also known as GHORB, is the IRGC's major engineering arm and one of Iran's largest contractors in industrial and development projects...
- Iranian labor law
External links
- Iran Construction Information Centre
- Annual Reviews - Reports by the Central Bank of Iran, including statistics about the construction sector in Iran.
- Iran Ministry of Housing and Urban Development
- List of projects open to foreign direct investment in Iran (2010)
- Ministry of Road & Transportation
- Iran Trade Promotion Organization
- Iran International Exhibitions Company
- Construction to Iran - Australian Trade (with useful links and resources)
- Construction materials industry in Iran - Encyclopedia Iranica
- Ahmadinejad tells of war on housing fraud (PressTV article)
- Global Property Guide- Iran's entry with information on taxes and statistics
Sepcialized reports
- Iran Infrastructure report - 2011 (80-page report)
- Construction Stone Market in Iran: Business Report 2011
Videos
- Housing Market in Iran - Part I Part II Part III - PressTV video (May 2010)
- Iran's Housing Market - PressTV video (October 2010)
- Iran's Housing Market - PressTV video (November 2010)
- Iran's Housing Market - PressTV video (June 2010)