In an effort to encourage construction activity in older parts of the city, the Tehran Municipality is exempting permit fee for building projects in these localities. Managing director of the municipality’s Renovation Office, Ebadollah Fathollahi said homes smaller than 75 sq. meters will benefit from 50% fee cut, while 150 sq. meter homes will get 100% exemption. He added that the initiative is in line with the Fifth Five-Year Economic Development Plan (ends 2016) to encourage new constructions.
At least 50% of the buildings in the distressed old areas are dangerous, dilapidated and old structures, and are highly vulnerable to natural hazards (especially earthquakes).