What is the average property price in Tehran?

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SANDS OF WEALTH

A team specialized in real estate investing in MENA countries (Morocco, UAE, Oman, etc.)

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Tehran. If you'd like to learn more about us, you can check our presentation page.

What's the current average property price in Tehran?

As of September 2025, Tehran's residential property market shows average prices ranging from $1,100 to $1,500 per square meter across most areas of the city.

A typical 100-square-meter apartment in a mid-range Tehran neighborhood costs between $110,000 and $150,000. The northern luxury districts of Elahiyeh and Fereshteh command premium prices of $1,400 to $1,500+ per square meter, making the same 100-square-meter apartment cost $140,000 to $150,000 or more.

The market shows significant variation based on location, with southern and eastern Tehran offering more budget-friendly options around $950 to $1,100 per square meter. Meanwhile, suburban areas like Karaj provide even more affordable alternatives at 20-30% below central Tehran prices, typically ranging from $500 to $750 per square meter.

These prices reflect both the ongoing economic challenges and currency fluctuations affecting Iran's property market. The market has experienced what experts describe as "deep stagnation" with reduced buyer demand despite continued price increases.

How do prices differ between apartments, houses, and luxury properties?

Apartments dominate Tehran's property market and represent the most common property type, with prices ranging from $1,100 to $1,500 per square meter depending on quality and location.

Traditional houses with larger land plots and courtyards command premium prices, particularly those featuring authentic Persian architectural elements. These properties often exceed the per-square-meter rates of comparable apartments due to their scarcity and cultural value in urban Tehran.

Luxury properties in northern Tehran districts like Elahiyeh, Fereshteh, and Niavaran consistently exceed $1,400 to $1,500 per square meter. High-end villas of 150 square meters in areas like Fereshteh Street frequently surpass $200,000 in total value, representing the pinnacle of Tehran's residential market.

The luxury segment remains relatively active compared to mid-range properties, as wealthy buyers continue to view premium real estate as a hedge against inflation and currency devaluation.

Which neighborhoods are the most expensive, which are budget friendly, and which are considered up-and-coming?

Tehran's most expensive neighborhoods cluster in the northern parts of the city, with Elahiyeh, Fereshteh Street, and Niavaran commanding the highest prices at $1,400 to $1,500+ per square meter.

Budget-friendly areas concentrate in southern and eastern Tehran, where older 75-square-meter apartments can be found for approximately $38,400. The Karaj suburbs offer the most affordable options, priced 20-30% cheaper than comparable properties in inner Tehran.

Up-and-coming areas show strong growth potential, particularly Karaj, which benefits from proximity to Tehran while maintaining affordability. Qom is experiencing infrastructure-driven development, while certain districts in Shiraz are gaining value due to education sector growth and cultural tourism development.

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What are the average prices per square meter across different areas?

What's the typical total purchase cost when including taxes, fees, and other expenses?

Total transaction costs for purchasing property in Tehran range from 4% to 7% of the purchase price, covering all additional fees beyond the property value.

Agent fees typically account for 2% to 3% of the purchase price, while registration fees and taxes add another 1% to 2%. Notary and legal fees constitute a smaller proportion of the total transaction costs. For a $100,000 property purchase, buyers should budget an additional $4,000 to $7,000 for these combined fees.

New tax legislation introduced in 2025 significantly impacts property transactions, with sales within one year of purchase taxed at 20% to 40% on gains. Tax rates decrease for longer-term holdings, and profits adjusted for inflation have become taxable, affecting investment strategies.

Foreign buyers face additional restrictions and cannot access mortgage financing, requiring full cash purchases that eliminate financing costs but increase upfront capital requirements.

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How do mortgage rates and financing options affect the overall cost of buying?

Tehran's mortgage market presents significant challenges with interest rates ranging from 22% to 30% annually under Islamic financing structures.

Mortgage terms typically extend up to 20 years but require substantial down payments of 30% to 50% of the property value. Eligibility requirements include comprehensive income documentation and high payment-to-income ratios that often exceed average salary levels.

Government financing programs exist but remain limited in scope and availability. The high cost of borrowing means that average monthly mortgage payments frequently surpass typical household incomes, creating substantial barriers to market entry and contributing to overall market stagnation.

Foreign nationals cannot access mortgage financing in Iran, requiring full cash purchases for international buyers. This restriction eliminates financing costs but significantly increases the capital requirements for foreign property investment in Tehran.

What are some concrete examples of recent purchase prices for different property types and locations?

Recent property transactions in Tehran demonstrate the wide price spectrum across different areas and property types as of 2025.

In southern and eastern Tehran's budget-friendly areas, a 75-square-meter apartment approximately 30 years old sells for around $38,400. This represents the entry-level segment for buyers seeking affordable housing in the capital.

Luxury northern districts like Elahiyeh feature 100-square-meter high-end apartments priced at $140,000 or more. Super luxury villas in premium locations like Fereshteh Street, spanning 150 square meters, command prices exceeding $200,000.

Karaj suburbs offer compelling value propositions with comparable properties priced 20% to 30% below similar Tehran properties, making them attractive for both investment and primary residence purposes.

How have average property prices in Tehran changed over the last 5 years and over the past year?

Tehran's property market has experienced dramatic price increases over the past five years, with prices rising approximately 1,700% between 2019 and 2024, reflecting both nominal increases and significant currency devaluation effects.

Over the past year alone, prices have continued their upward trajectory, rising from around $950 per square meter in September 2024 to $1,100+ per square meter by February 2025, representing a 16% increase in just five months.

Despite these price increases, the market faces what experts characterize as "deep stagnation" with dramatically reduced buyer demand. This creates a paradox where prices continue rising while transaction volumes decline significantly.

The combination of high prices, limited financing access, and economic uncertainty has created a market where sellers maintain high asking prices while buyers increasingly delay purchase decisions or seek alternatives in suburban areas.

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What are the forecasts for property prices in 1 year, 5 years, and 10 years?

Short-term forecasts for 1-2 years predict continued market volatility with likely weak demand unless significant improvements occur in income levels or price stabilization measures are implemented.

The 5-year outlook suggests potential market stabilization at more affordable levels, with growth expectations shifting away from central Tehran toward up-and-coming cities like Karaj and Qom rather than premium central districts.

Long-term 10-year projections indicate potential appreciation in premium Tehran areas and infrastructure-growth zones, though success depends heavily on broader economic reforms and currency stability. The highest appreciation potential lies near planned metro extensions, highway developments, and areas surrounding universities or major new developments.

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How does Tehran's property market compare with other large, similar cities?

What are the smartest choices today if you want to live in the property, rent it out short term, rent it long term, or resell later for a profit?

For primary residence purposes, suburban and up-and-coming neighborhoods like Karaj and southern/eastern Tehran offer superior value and more living space relative to price, making them ideal for families and buyers with moderate budgets.

Long-term rental investments perform best in central and mid-range Tehran areas near major employers or universities, providing solid yields and lower tenant turnover rates. These locations offer stable rental income potential in the current market environment.

Short-term rental opportunities exist primarily in luxury northern apartments in Elahiyeh and Fereshteh, or cultural/tourist districts in Shiraz and Isfahan, though investors should monitor potential regulatory changes affecting short-term rentals.

For resale and investment purposes, focus should be on infrastructure-led growth areas including Karaj, Qom, and planned metro extension zones rather than speculative inner-city properties. Successful investment strategies require 5-10 year holding periods to capture appreciation potential.

Overall, what are the best opportunities right now depending on your budget and goals?

Up-and-coming districts in Karaj, Qom, and Shiraz suburbs present the strongest opportunities for appreciation potential combined with reasonable entry prices for both investment and personal use.

Inner Tehran premium areas in the north remain suitable for asset preservation and luxury rental income but are less likely to deliver high short-term gains in the current stagnant market conditions.

Budget-conscious buyers should target emerging outer districts or Karaj for affordable living options, while investors seeking growth should focus on infrastructure-linked developments with long-term appreciation potential.

The current market favors patient investors willing to hold properties for extended periods rather than short-term speculators, with the best opportunities existing in areas poised to benefit from planned infrastructure improvements and urban expansion.

It's something we develop in our Iran property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Sands of Wealth - Iran House Prices
2. Tehran Times - Housing Prices
3. Iran International - Property Tax Changes
4. Sands of Wealth - Iranian Rial Property Prices
5. Numbeo - Property Investment Rankings
6. Sands of Wealth - Tehran Price Forecasts
7. Trading Economics - Iran Interest Rates
8. Global Property Guide - Iran Taxes and Costs