Domestic contractors able to construct 1m housing units per year

August 7, 2021 - 11:56

TEHRAN - Deputy Head of Iran’s Mass Construction Association Iraj Rahbar has said the country’s contractors are capable of constructing one million housing units a year if the necessary funding and land is provided, IRNA reported.

Mentioning a plan for the construction of one million affordable housing units per year by the new government, Rahbar said: “allocating land and financing are two important factors for the successful implementation of any housing project, and if these two are provided, building one million housing units per year will be easily possible.”

The official noted that over the last three years, many efforts have been made to allocate the needed land for housing projects including the National Housing Action Plan to the Ministry of Transport and Urban Development, but the land has not been provided as needed.

Rahbar further stressed that there are different ways to attract financial resources for housing construction projects including the use of private sector potentials.

If the trust between the private sector and the government is restored, the issue of taxation on housing projects is resolved and the government’s dues to the private sector contractors are paid on time, mass builders will be more motivated to participate in construction projects, he said.

The official noted that private sector investors have huge resources that can be guided into mass construction projects if they are encouraged and appropriate incentives are considered by the government.

Referring to the recent rise in the prices of cement and steel as main items used in construction, he continued: "The rise in the prices of cement and steel is one of the obstacles in housing production that the government must address; the government has provided all the necessary facilities including cheap energy for the cement and steel production units, but we see that such products are exported instead of being supplied to the domestic market.”

Earlier this month, Mahmoud Mahmoudzadeh, deputy transport, and urban development minister announced that planning has been made and preparations have been done to start constructing 1.3 million affordable housing units across the country.

Mahmoudzadeh said the required regulations have been prepared and facilities have been created to provide land for the mentioned housing units by the next government.

“With the measures taken, the conditions are more favorable for the new government to begin the work,” he noted.

EF/MA

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