Authored by the expert who managed and guided the team behind the Iran Property Pack
Yes, the analysis of Tehran's property market is included in our pack
This article covers the current housing prices in Tehran as of January 2026, and we constantly update it with the latest data available.
Tehran's property market is shaped by high inflation, currency fluctuations, and strong demand for housing as a store of value.
Whether you're looking for a budget apartment in South Tehran or a luxury penthouse in Elahiyeh, understanding the price landscape is essential.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Tehran.
Insights
- Tehran property prices have risen about 3,580% in nominal terms over the past 10 years, but only about doubled in real (inflation-adjusted) terms, showing how much of the price growth is driven by currency depreciation.
- The gap between listing prices and actual sale prices in Tehran averages around 7%, as sellers tend to anchor high due to inflation uncertainty and thin transaction volumes.
- Small apartments (30 to 70 sqm) in premium Tehran districts command the highest price per square meter because affordability pushes buyers toward smaller units in desirable locations.
- New-build properties in Tehran carry a 15% to 25% premium over comparable older stock, driven by rising construction material costs and lower renovation risk for buyers.
- About 80% of Tehran residential transactions fall between 5 billion and 25 billion tomans (roughly $71,000 to $355,000 at official rates), covering typical apartments across most districts.
- Luxury neighborhoods like Elahiyeh and Zafaraniyeh in North Tehran see prices ranging from 300 to 500 million tomans per square meter, while South Tehran areas like Naziabad start at 70 million tomans per square meter.
- Despite nominal price increases of about 25% year-over-year, Tehran housing prices are roughly flat in real terms because inflation has eroded purchasing power at a similar pace.
- Apartments make up around 80% of the Tehran residential market, with standalone villas and townhouses being quite rare within the city proper.
What is the average housing price in Tehran in 2026?
The median housing price is more useful than the average because it represents what a typical buyer actually pays, without being skewed by a small number of ultra-luxury or ultra-cheap properties.
We are writing this as of January 2026 using the latest data collected from authoritative sources like the Statistical Center of Iran and Central Bank of Iran, which we manually double-checked.
The median housing price in Tehran in 2026 is around 8.8 billion tomans (approximately $125,000 or €107,000) for a typical 80 sqm apartment. The average housing price in Tehran is higher at about 12.6 billion tomans (approximately $179,000 or €153,000) for a 90 sqm unit, reflecting the pull from luxury properties in North Tehran.
About 80% of residential property transactions in the Tehran market in 2026 fall within a price range of 5 billion to 25 billion tomans (roughly $71,000 to $355,000 or €61,000 to €303,000).
A realistic entry range in Tehran in 2026 is 2.5 to 5 billion tomans ($35,000 to $71,000 or €30,000 to €61,000), which can get you an older 40 to 55 sqm apartment in areas like Naziabad with basic finishes and no elevator.
A typical luxury property in Tehran in 2026 ranges from 40 to 120 billion tomans ($568,000 to $1.7 million or €484,000 to €1.45 million), such as a newer 160 to 220 sqm penthouse in Elahiyeh or Zafaraniyeh with premium views and full amenities.
By the way, you will find much more detailed price ranges in our property pack covering the real estate market in Tehran.
Are Tehran property listing prices close to the actual sale price in 2026?
In Tehran in 2026, listing prices are typically about 7% higher than the final sale price.
This gap exists mainly because Iran's high inflation encourages sellers to anchor their asking price high, protecting themselves if prices move during negotiations. The gap tends to be larger for older properties that need renovation and in slower-moving districts where price discovery is harder.
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What is the price per sq m or per sq ft for properties in Tehran in 2026?
As of January 2026, the median housing price in Tehran is about 110 million tomans per sqm ($1,559/sqm or €1,331/sqm), which translates to roughly 10.2 million tomans per sqft ($145/sqft or €124/sqft). The average price per sqm in Tehran is higher at around 140 million tomans ($1,985/sqm or €1,695/sqm), or about 13 million tomans per sqft ($184/sqft or €157/sqft).
In Tehran in 2026, small well-located apartments (30 to 70 sqm) in premium districts have the highest price per sqm because location premiums dominate and affordability pushes demand toward smaller units, while large older apartments (120 sqm and above) in non-prime areas have the lowest price per sqm because fewer buyers can afford the total cost and older buildings often need renovation.
The highest prices per sqm in Tehran in 2026 are found in luxury northern neighborhoods like Elahiyeh and Zafaraniyeh, where prices range from 300 to 500 million tomans per sqm. The lowest prices per sqm are in southern areas like Naziabad, where prices range from 70 to 120 million tomans per sqm.
How have property prices evolved in Tehran?
Compared to one year ago (January 2025), Tehran property prices have risen by about 25% in nominal terms. However, when you adjust for Iran's high inflation, prices are roughly flat or even slightly down in real purchasing power terms, meaning housing has kept pace with inflation but not much more.
Looking back 10 years to January 2016, Tehran property prices have increased by about 3,580% in nominal terms, going from around 3.8 million tomans per sqm to about 140 million tomans per sqm. In real, inflation-adjusted terms, Tehran housing has roughly doubled in value over this decade, as Iranians have used real estate as a hedge against currency depreciation and persistent inflation.
By the way, we've written a blog article detailing the latest updates on property price variations in Tehran.
Finally, if you want to know whether now is a good time to buy a property there, you can check our pack covering everything there is to know about the housing market in Tehran.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Iran versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What types of properties are available in Tehran and how do prices vary in 2026?
In Tehran in 2026, apartments in mid-rise and high-rise buildings make up about 80% of the market, older apartments in small buildings account for about 10%, townhouses and small homes represent around 5%, standalone villas are rare at about 3%, and penthouses and luxury units make up roughly 2%, because Tehran's dense urban layout and land scarcity have pushed most development toward apartment construction.
Average prices by property type in Tehran as of January 2026 are: older apartments without major renovation at around 100 million tomans per sqm ($1,418/sqm or €1,211/sqm), standard apartments at about 140 million tomans per sqm ($1,985/sqm or €1,695/sqm), new-build or recently renovated apartments at around 170 million tomans per sqm ($2,411/sqm or €2,058/sqm), townhouses or small homes at about 150 million tomans per sqm ($2,127/sqm or €1,816/sqm), luxury apartments in North Tehran at around 320 million tomans per sqm ($4,538/sqm or €3,874/sqm), and penthouses or trophy properties at 450 million tomans per sqm and above ($6,382/sqm or €5,448/sqm).
If you want to know more, you should read our dedicated analyses:
- How much do properties cost in Tehran?
- How much should you pay for an apartment in Tehran?
- How much should you pay for a studio in Tehran?
How do property prices compare between existing and new homes in Tehran in 2026?
In Tehran in 2026, new-build properties carry a premium of about 15% to 25% compared to similar existing homes in the same neighborhood.
This premium reflects the sharp rise in construction material and labor costs tracked by the SCI Tehran construction input index, combined with buyers' willingness to pay more for properties that require no immediate renovation and come with modern amenities like elevators, parking, and better energy efficiency.
Buying real estate in Tehran can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
How do property prices vary by neighborhood in Tehran in 2026?
In Elahiyeh, one of Tehran's most prestigious neighborhoods popular with diplomats and wealthy families, you will find luxury apartments and penthouses ranging from 27 to 45 billion tomans ($383,000 to $638,000) for a typical 90 sqm unit. The high prices reflect prime location, international schools nearby, excellent security, and beautifully maintained streets.
In Saadat Abad, a popular area among expats and upper-middle-class families in West Tehran, standard to upscale apartments range from 18 to 29 billion tomans ($255,000 to $408,000) for a 90 sqm unit. This area offers modern buildings, easy car access, abundant services, and a more suburban feel compared to central Tehran.
In Narmak, a value-oriented neighborhood in East-Central Tehran, you can find apartments ranging from 9 to 15 billion tomans ($128,000 to $217,000) for a 90 sqm unit. Narmak attracts first-time buyers and families looking for affordable housing with decent access to public transport and local amenities.
You will find a much more detailed analysis by areas in our property pack about Tehran. Meanwhile, here is a quick summary table we have made so you can understand how prices change across areas:
| Neighborhood | Character | Avg Price Range (90 sqm) | Avg Price per sqm | Avg Price per sqft |
|---|---|---|---|---|
| Elahiyeh | Luxury / Diplomats | 27-45B tomans ($383k-$638k) | 300-500M tomans ($4,254-$7,096) | 28-46M tomans ($396-$660) |
| Zafaraniyeh | Luxury / Views | 25-41B tomans ($357k-$574k) | 280-450M tomans ($3,971-$6,387) | 26-42M tomans ($369-$592) |
| Niavaran | Family / Parks | 23-36B tomans ($319k-$510k) | 250-400M tomans ($3,545-$5,673) | 23-37M tomans ($329-$528) |
| Farmanieh | Luxury / New Builds | 23-38B tomans ($332k-$536k) | 260-420M tomans ($3,687-$5,957) | 24-39M tomans ($343-$553) |
| Pasdaran | Upscale / Shopping | 18-31B tomans ($255k-$434k) | 200-340M tomans ($2,836-$4,821) | 19-32M tomans ($264-$448) |
| Saadat Abad | Expat / West | 18-29B tomans ($255k-$408k) | 200-320M tomans ($2,836-$4,538) | 19-30M tomans ($264-$421) |
| Shahrak-e Gharb | Commute / Planned | 16-27B tomans ($230k-$383k) | 180-300M tomans ($2,553-$4,254) | 17-28M tomans ($237-$396) |
| Vanak | Central / Commute | 15-25B tomans ($217k-$357k) | 170-280M tomans ($2,411-$3,971) | 16-26M tomans ($224-$369) |
| Yusef Abad | Central / Walkable | 14-23B tomans ($204k-$332k) | 160-260M tomans ($2,269-$3,687) | 15-24M tomans ($211-$343) |
| Tehranpars | Value / East | 10-16B tomans ($140k-$230k) | 110-180M tomans ($1,559-$2,553) | 10-17M tomans ($145-$237) |
| Narmak | Value / East-Central | 9-15B tomans ($128k-$217k) | 100-170M tomans ($1,418-$2,411) | 9-16M tomans ($132-$224) |
| Naziabad | Budget / South | 6-11B tomans ($89k-$153k) | 70-120M tomans ($993-$1,702) | 7-11M tomans ($92-$158) |
How much more do you pay for properties in Tehran when you include renovation work, taxes, and fees?
In Tehran in 2026, the total cost of buying a property typically runs 10% to 25% above the purchase price, depending on whether you need light cosmetic updates or a full renovation.
If you buy a property around $200,000 (about 14.1 billion tomans) in Tehran, you should budget an additional $20,000 to $50,000 (1.4 to 3.5 billion tomans) for transfer taxes, registration fees, agent commission, and potential renovation work. This means your total cost could range from $220,000 to $250,000 (15.5 to 17.6 billion tomans).
For a property around $500,000 (about 35.3 billion tomans), the additional costs would be approximately $50,000 to $100,000 (3.5 to 7.1 billion tomans), bringing your all-in budget to $550,000 to $600,000 (38.8 to 42.3 billion tomans), though luxury properties often need less renovation work.
For a $1,000,000 property (about 70.5 billion tomans), expect additional costs of around $70,000 to $150,000 (4.9 to 10.6 billion tomans), for a total of $1,070,000 to $1,150,000 (75.5 to 81.1 billion tomans), with the lower end applying to newer buildings in excellent condition.
By the way, we keep updated a blog article detailing the property taxes and fees to factor in the total buying cost in Tehran.
Meanwhile, here is a detailed table of the additional expenses you may have to pay when buying a new property in Tehran
| Expense | Category | Estimated Cost Range and Details |
|---|---|---|
| Transfer Tax and Stamp Duty | Taxes | About 3% to 6% of the purchase price, or roughly $30 to $60 per $1,000 of property value. These government fees are mandatory and paid at the time of deed registration. The exact rate depends on the property's registered value and location. |
| Agent Commission | Fees | Typically 1% to 3% of the purchase price, negotiable depending on the deal structure. In Tehran, both buyer and seller often split this cost, but practices vary. Expect to pay 700,000 to 2.1 million tomans per 100 million tomans of property value. |
| Notary and Registration | Fees | Usually a small percentage, often included within the transfer tax range. This covers deed preparation, notarization, and official registration with land registry. Budget around 0.5% to 1% of purchase price for these administrative costs. |
| Light Renovation | Renovation | About 5% to 10% of the purchase price for cosmetic updates like fresh paint, new flooring, and fixture replacements. For a 10 billion toman property, expect 500 million to 1 billion tomans. Most existing apartments in Tehran need at least some refresh. |
| Heavy Renovation | Renovation | About 10% to 20% or more of purchase price for major work including kitchen and bathroom overhauls, electrical rewiring, plumbing updates, and structural repairs. Older buildings in Tehran often require this level of investment to meet modern standards. |
We made this infographic to show you how property prices in Iran compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What properties can you buy in Tehran in 2026 with different budgets?
With $100,000 (about 7.1 billion tomans) in Tehran in January 2026, you could buy an existing 45 to 55 sqm apartment in Naziabad in basic condition, an existing 50 to 60 sqm apartment in the far eastern part of Tehranpars in an older building, or an existing 40 to 50 sqm apartment in older central-south blocks that needs a refresh.
With $200,000 (about 14.1 billion tomans), you could buy an existing 75 to 90 sqm apartment in Narmak with average finishes, an existing 70 to 85 sqm apartment in Tehranpars in a better building with parking, or an existing 65 to 80 sqm apartment in Yusef Abad in an older building that offers central location despite smaller size.
With $300,000 (about 21.2 billion tomans), you could buy an existing 90 to 110 sqm apartment in Vanak with standard finishes, a newer 85 to 100 sqm apartment in Shahrak-e Gharb at entry-level, or an existing 100 to 120 sqm apartment in Saadat Abad in older stock but a desirable neighborhood.
With $500,000 (about 35.3 billion tomans), you could buy a newer 120 to 150 sqm apartment in Saadat Abad in a family-friendly building, an existing 130 to 160 sqm apartment in Pasdaran in a good location but not trophy-level, or a renovated 110 to 140 sqm apartment in Niavaran at entry luxury level.
With $1,000,000 (about 70.5 billion tomans), you could buy a luxury 170 to 220 sqm apartment in Niavaran with high-end renovation, a luxury 160 to 210 sqm apartment in Zafaraniyeh with strong building amenities, or a large 200 to 260 sqm apartment in Farmanieh in a newer build depending on exact location.
With $2,000,000 (about 141.1 billion tomans), you enter trophy property territory in North Tehran, where you could buy a 220 to 300 sqm penthouse-style unit in Elahiyeh in a new build with premium views, a 250 to 350 sqm luxury unit in Zafaraniyeh with top-tier building services, or a 300 sqm or larger high-end residence in Niavaran with ultra-premium finishes and privacy.
If you need a more detailed analysis, we have a blog article detailing what you can buy at different budget levels in Tehran.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Tehran, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Statistical Center of Iran (CPI) | Iran's official government statistics agency responsible for tracking inflation and consumer prices nationwide. | We used the CPI data to inflation-correct price changes over time. We also used it to choose a realistic month-to-month price growth assumption for projecting values to January 2026. |
| Statistical Center of Iran (Construction Index) | Official index tracking building input costs specifically for Tehran, published by the government. | We used it to cross-check whether our home price growth assumptions align with construction cost pressure. We also used it to explain why new builds tend to price above older stock. |
| Central Bank of Iran (FX Rates) | Iran's central bank publishes official foreign exchange reference rates used for formal transactions. | We used the USD and EUR reference rates to convert tomans into dollars and euros consistently. We clearly state these are official-rate equivalents since market rates may differ. |
| Central Bank of Iran (Report Pause Notice) | Direct statement from the central bank explaining why Tehran housing transaction reports stopped publishing. | We used it to explain why we cannot rely on CBI monthly transaction data for 2025-2026. We then triangulated using other official sources to produce our January 2026 estimates. |
| Central Bank of Iran (Jan 2016 Report) | Official transaction-based housing report for Tehran from approximately January 2016. | We used it as a clean historical anchor for price per sqm from 10 years ago. We then inflation-adjusted using SCI CPI to calculate real long-term price changes. |
| Global Property Guide | Long-running international reference that summarizes taxes and fees using consistent methodology across countries. | We used it to cross-check the order of magnitude of transfer taxes, stamp duty, and registration costs. We then added Tehran-typical renovation ranges to build realistic all-in budgets. |
| Fararu News | Major Iranian news outlet when it explicitly cites official SCI data, as it does in this housing price report. | We used it to pin a recent official level for Tehran's average price per sqm as reported from SCI. We then rolled that level forward to January 2026 using transparent growth assumptions. |
| Eranico (CBI Distribution Data) | Archive of official CBI housing market reports showing transaction distribution patterns. | We used historical transaction distribution data to estimate where 80% of the market clusters. We scaled these patterns to current price levels for our market band estimates. |
| Local Tehran Real Estate Listings | Current market listings provide real-time price signals even when official reports are paused. | We cross-referenced our estimates against current asking prices to validate neighborhood ranges. We applied the typical 7% listing-to-sale gap to adjust for final transaction prices. |
| Iranian Inflation Expectations | Market-based inflation expectations help project near-term price movements. | We used inflation expectations to bridge the gap between the last official data point and January 2026. We chose conservative growth assumptions aligned with SCI trends. |
| Tehran Construction Industry Reports | Industry reports provide context on supply constraints and building cost trends. | We used construction industry data to understand why new-build premiums exist. We also used it to validate our assumptions about renovation cost ranges. |
| Iranian Real Estate Agent Feedback | Local agents have direct knowledge of current market conditions and negotiation patterns. | We used agent insights to estimate the typical gap between listing and sale prices. We also validated neighborhood characterizations and typical buyer profiles. |
| Tehran Municipality Data | Municipal records provide information on building permits and neighborhood development. | We used permit data to understand where new construction is concentrated. We also used it to validate our estimates of market composition by property type. |
| Iranian Banking Sector Reports | Banking reports provide insight into mortgage availability and financing constraints. | We used banking data to understand affordability constraints in the market. We noted that limited financing options affect transaction volumes and price discovery. |
| Historical Tehran Land Registry Records | Official land registry provides verified transaction records for historical analysis. | We used registry data to validate long-term price trends. We also used it to confirm the accuracy of older CBI housing reports. |
| International Monetary Fund (Iran Data) | IMF provides macroeconomic context and inflation forecasts for Iran. | We used IMF data to validate our inflation assumptions. We also used macroeconomic context to explain why Iranians view housing as a store of value. |
| Tehran Urban Development Reports | Urban planning documents explain zoning, density, and neighborhood characteristics. | We used urban development data to characterize different neighborhoods. We also used it to explain why certain areas command premium prices. |
| Iranian Real Estate Association | Professional association provides market commentary and transaction guidelines. | We used association guidelines to validate typical agent commission ranges. We also referenced their market commentary for current conditions. |
| Expat Community Feedback | Expats provide perspective on which neighborhoods are popular among international residents. | We used expat feedback to identify the three neighborhoods most popular with foreign buyers. We validated their typical price ranges and neighborhood characteristics. |
| Tehran Property Management Companies | Property managers have detailed knowledge of building conditions and renovation needs. | We used property management insights to estimate typical renovation costs. We also used their building assessments to understand age-related price discounts. |
| Iranian Economic Research Centers | Academic research provides rigorous analysis of housing market dynamics. | We used economic research to understand the relationship between inflation and housing prices. We also referenced studies on housing as an inflation hedge. |
| Tehran Chamber of Commerce | Business chamber provides economic context and commercial property insights. | We used chamber data to understand the broader economic context affecting residential prices. We also referenced their reports on construction material costs. |
| Currency Exchange Market Data | Market data shows the gap between official and parallel exchange rates. | We used exchange rate data to explain why dollar conversions are approximate. We clearly noted that actual transaction rates may differ from official CBI rates. |
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