Domestic Economy

$14.2b Housing Plan

$14.2b Housing Plan$14.2b Housing Plan

The government is planning to build 800,000 leased houses for low-income Iranians during the next ten years, Tasnim news agency reported. The plan, which would replace the previous government’s housing plan known as Maskan-e Mehr, will provide small 60-square-meter housing units which will cost 380 trillion rials ($14.28 billion) for the coming decade. Critics say the plan would become a heavy financial burden on the government. In 2007, former president Mahmoud Ahmadinejad offered free land and cheap credit to contractors in a bid to provide two million low-income Iranians with housing units. But the national project slowed down later due to lack of finances. The new administration officials are now blaming the project for having added too much liquidity to the market and having pushed inflation as high as 40 percent last summer.