Iran Home Prices 500% More Than Construction Costs

The per square meter price of homes in Iran are 500% more than their construction costs, a deputy minister of roads and urban development said.
Noting that exorbitant home prices are beginning to stabilize in recent months, Mahmoud Mahmoudzadeh added that the only reason behind the wide gap between the construction costs and home prices is that housing remains an investment vehicle, IRIB News reported.
According to Ahmad Khorram, the head of Construction Engineering Organization, each year, 100 million square meters of buildings are constructed in Iran’s urban and rural areas.
“The annual turnover of real-estate development is 4,000 billion rials [$16 million]. The per square meter cost averages 50 million rials [$200] in Iran, with 60-65 million rials [$240-260] in cities and 30-35 million rials [$120-140] in villages,” he said.
“Engineering services account for 5-8% of construction costs in the world whereas in Iran they barely exceed 1%.”