The construction industry of Iran is divided into two main sections: the first is government infrastructure projects and the second is the housing industry.
In recent years, the construction industry in Iran has been thriving due to an increase in national and international investment to the extent that it is now the largest in the Middle East region.
The Central Bank of Iran indicates that 70 percent of the Iranians own homes, with huge amounts of idle money entering the housing market. Every year there is a need for 750,000 additional units as young couples embark on married life.
At present, 2000 units are being built every day although this needs to increase to 2740 units.
The housing industry is one of the few segments of the Iranian economy where state capital shares as little as two per cent of the market, and the remaining 98 per cent is private sector investment.
Restoration of old buildings is one of the priorities for the Government of Iran. Estimates show that about $143 billion needs to be allocated in the next 10 years for restoration of 14,000 meters of critically decaying buildings.