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Housing, Construction Sectors to Retain Contractionary Trajectory

The increase in the end price of construction following the rise in costs and inflation in construction inputs, including land, materials and wages, has imposed an appalling inflation on the housing and construction sectors
Housing, Construction Sectors to Retain Contractionary Trajectory
Housing, Construction Sectors to Retain Contractionary Trajectory

The state of housing production and supply in the new Iranian year (started March 21) can be studied from different aspects. 
In Iran, the private sector is the main producer of housing. But at certain junctures, the government carried out housing plans to narrow the gap between supply and demand for low-income groups. Over the past two decades, two large-scale national projects, namely the Mehr Housing Project and the National Housing Initiative, were launched. 
Before these projects, some small-scale housing supply plans were carried out. However, the overall outcome was not very satisfactory and the housing problem has worsened by the day, increasing the gap between the purchasing power of households and the price of housing. 
Mohammad Mortezavi, the head of Iran Mass Housing Builders Association, prefaced his write-up for the Persian daily Donya-e-Eqtesad with this note. A translation of the text follows: 

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