The Ministry of Roads and Urban Development is planning to assist renters by arranging a bartering platform where new and semi-finished homes are exchanged for government-owned lands.
“The private sector's mass builders and real estate developers will be granted incentives to use government-owned land to build new residential units. New homes will be offered on the tenancy market at affordable rates, on par with renters' income. This medium-term project would help both renters and real-estate developers and give way to a professional home leasing system,” Parvaneh Aslani, director of the ministry’s Housing Economy Department, said.
Housing experts believe that the supply and demand imbalance of the housing market is to blame for faster growth in rent rates compared with home prices.
The ministry’s initiative would pull the housing sector out of its current recession by triggering construction, provided that the government’s intervention does not cause deviation in home prices and prolonged holdups, the Persian-language daily Iran reported.
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