Expert: No Shortcut to Growth via Housing Investment

To some Iranian economists and policymakers, housing construction is a major economic activity with large multiplier positive effects on economic growth.
Ali Sarzaeem, an economic expert, argues against this rationale.  
As per Clause 18 of the 2021-22 Budget Law, banks are required to pay a total of 3,600 trillion rials ($15.6 billion) in loans from their internal resources for the construction of 1.2 million housing units in both urban and rural areas. Borrowers can take out a loan worth up to 3,000 million rials ($13,000), Fars News Agency reported.  
“There are probably two assumptions made by people who advocate government-backed housing programs. First, real-estate prices will be kept in check by increasing the supply of homes and consequently, members of the public will see an improvement in economic welfare. Second, the boom in real-estate development will lead to significant growth in other economic sectors,” Sarzaeem said.