Domestic Economy

Construction Sector Forecast to Expand by 6.5 Percent in 2023

Construction Sector Forecast to Expand by 6.5 Percent in 2023
Construction Sector Forecast to Expand by 6.5 Percent in 2023

Iran’s construction sector is expected to grow by 6.5% to reach 2,516,729 billion rials in 2023 and 3,133,384.9 billion rials by 2027, according to ResearchAndMarkets.
Despite near-term challenges in certain construction sectors, medium- to long-term growth story in Iran remains intact. Iran’s construction sector is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a compound annual growth rate of 5.6% during 2023-27.
ResearchAndMarkets earlier forecast an annual average growth of 3.6% between 2023-26 for Iran’s construction sector, saying the growth is supported by government investments in energy, oil and gas, petrochemicals, infrastructure and industrial sectors.
“The sector's output will be supported by the implementation of major projects, including the 300,000-barrel Shahid Qasem Soleimani Oil Refinery project with an investment of 483 trillion rials, the Khuzestan refinery with an investment of 189 trillion rials and the development and stabilization of Abadan refinery, with an investment of 84 trillion rials,” the earlier report published last year said.
“Additionally, an investment of 45 trillion rials over the next four years to develop 10 key motorways will improve the transportation network of the country. Moreover, the country's talks with the Taliban to resume work on the Khaf-Herat link project, connecting northeastern Iran with northwestern Afghanistan, could help enhance the rail network and improve trade relations between the countries. However, there are key political and economic risks that could impact investor confidence. On May 5, 2022, the government increased prices for essential food, which has compounded financial challenges for households and led to protests across many areas of the country.”
A test run saw a freight train arrive in Herat Province earlier this month via the Khaf-Herat railroad. Currently, the railroad has entered Herat as a test, but the process of transporting commercial goods through the Khaf-Herat railroad will start soon, Ariana News reported.

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