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What is happening in Isfahan’s real estate market? Are prices going up or down? Is Isfahan still a hotspot for foreign investors? How is Iran’s government impacting real estate policies and taxes in 2025?
These are the questions everyone is asking us every day—professionals, buyers, and sellers alike, from the historic city center to the bustling suburbs and beyond. Perhaps you’re wondering the same thing.
We know this because we stay deeply connected with local professionals and people like you, diving into the Isfahan real estate market every single day. That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market trends and dynamics.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.

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1) Foreign investors will target short-term rentals to benefit from Isfahan's booming tourism sector
Foreign investors are eyeing Isfahan for short-term rental properties due to its booming tourism.
Isfahan has seen a 400% increase in tourist arrivals since 2013, making it a hot spot for visitors. This surge is part of a larger trend in Iran, where tourism revenues hit $6.2 billion in 2022, showing a 39% growth from the previous year. The Iranian government is keen on boosting tourism, and one of their major moves is expanding Isfahan International Airport. This project will increase the airport's capacity from 2.5 million to 9 million passengers annually, which means even more tourists will be flocking to the city.
With more tourists, there's a pressing need for accommodations, and local officials are feeling the heat to build more hotels. This situation opens up a golden opportunity for investors to dive into short-term rental properties. Globally, short-term rentals are on the rise, with a 13% increase in supply from October 2023 to October 2024. Isfahan is expected to follow this trend, as tourists increasingly prefer short-term rentals over traditional hotels.
Short-term rentals are not just popular; they're also profitable. They generally offer higher returns compared to long-term leases, making them a smart investment choice. In Isfahan, this is particularly true as the city continues to attract more visitors. The growing demand for short-term rentals is likely to drive up prices, benefiting those who invest early.
Investors looking to capitalize on Isfahan's tourism boom should consider the city's vibrant culture and historical significance, which draw tourists from around the world. The city's unique blend of ancient architecture and modern amenities makes it a compelling destination. This cultural richness, combined with the government's push for tourism, makes Isfahan a prime location for short-term rental investments.
As Isfahan's tourism sector continues to grow, foreign investors are likely to focus on short-term rental properties to maximize their returns. The city's expanding infrastructure and increasing tourist numbers make it an attractive market for those looking to invest in the hospitality industry.
Sources: Financial Tribune, Tehran Times, Helplama, MyLighthouse
2) Rents will increase in areas with better public transport as accessibility becomes crucial for tenants
Rents are rising in areas with improved public transport because accessibility is now a key factor for tenants.
Take Lille, for instance. Properties near transport stops have seen a significant boost in value due to transit-oriented development. This often means higher rents as landlords take advantage of the increased desirability of these well-connected spots. In Hong Kong, the story is similar. The development around new MTR stations has led to higher property values and rents, clearly showing how public transport accessibility impacts rental prices.
Surveys of tenants consistently reveal a strong preference for homes with easy access to public transport. The convenience and time savings make these areas more attractive, leading to increased demand for housing in well-connected neighborhoods. This demand naturally pushes rental prices up.
Real estate market analyses further emphasize the premium placed on properties near transit hubs. This supports the trend of rising rents in areas with good public transport. People are willing to pay more for the convenience of a shorter commute and better connectivity.
In many cities, the development of public transport infrastructure is a game-changer for the real estate market. As new lines and stations open, the surrounding areas often experience a surge in property values and rents. This is because tenants prioritize accessibility when choosing where to live.
For potential property buyers, understanding this trend is crucial. Investing in areas with planned or existing public transport improvements can be a smart move, as these locations are likely to see continued growth in rental demand and property values.
Sources: Centre for Cities, ITDP

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Iran. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) City center rental yields will rise as tourist demand for short-term rentals increases
Rental yields in Isfahan's city center are on the rise as more tourists flock to the area for short-term stays.
In 2023, Isfahan Province saw a record-breaking influx of over 85,000 foreign tourists in just the first month of the Iranian year. This surge highlights the city's growing allure as a must-visit destination. With more visitors, the demand for short-term rentals is naturally climbing, making it a hot spot for property investors.
The popularity of platforms like Airbnb is also playing a big role. In 2023, there was a 16.6% global increase in Airbnb listings, and Isfahan is likely riding this wave too. This means more properties are being rented out, and they're often fetching higher daily rates compared to long-term leases. Even when the market wobbles, these short-term rentals tend to hold their value.
The Iranian government is keen on boosting tourism, aiming to attract 20 million tourists annually by 2025. They're investing in infrastructure, with plans to build 63 hotels and launch 45 tourism projects. This will only make Isfahan more appealing, further driving up the demand for short-term rentals in the city center.
Isfahan's rich history and vibrant cultural events are a magnet for tourists. Media reports frequently highlight these attractions, ensuring a steady stream of visitors. This ongoing interest means that city center accommodations are in high demand, making it a prime area for rental investments.
Sources: Financial Tribune, Business of Apps, Tehran Times
4) Efforts to cut air pollution will attract health-conscious buyers to certain neighborhoods
Efforts to reduce air pollution in Isfahan are drawing health-conscious buyers to certain neighborhoods.
In 2023 and 2024, areas like Ostandari Isfahan saw a noticeable improvement in the air quality index (AQI), with real-time data showing a drop in pollution levels. This indicates that the city's ongoing initiatives are making a real difference.
The government is actively developing blue and green spaces, such as canals branching from the Zayandeh Rood River, to enhance the environment. These areas not only promote a healthier lifestyle but also boost the overall sense of well-being, making them more appealing to those who value health and wellness.
There's a growing demand for properties near parks and green spaces, reflecting a clear preference for cleaner environments. Real estate listings now highlight air quality improvements, directly targeting health-conscious buyers and making these neighborhoods more attractive.
For those considering a move, these changes mean that living in Isfahan could offer a healthier lifestyle. The city's efforts are not just about reducing pollution; they're about creating a more livable and enjoyable environment.
As these improvements continue, expect more neighborhoods to become hotspots for buyers who prioritize health. Isfahan's transformation is a testament to the power of environmental initiatives in shaping real estate trends.
Sources: AQI Dashboard, MDPI
5) Foreign buyers will increasingly target Isfahan’s luxury market due to favorable exchange rates
Foreign buyers are increasingly drawn to Isfahan's luxury market, thanks to favorable exchange rates.
With the Iranian Rial holding steady against the US Dollar, 1 IRR equals 0.00002374 USD as of January 2025, making Isfahan's luxury properties a financially attractive option for international investors.
Globally, foreign investment in real estate is booming. For example, foreign buyers spent $42 billion on U.S. residential properties in 2023-2024, showing a keen interest in exploring real estate beyond their borders, which could easily extend to Isfahan.
Luxury property markets in places like Mainland China and Hong Kong are on the rise, indicating a broader trend of increasing property values in luxury sectors. This suggests that Isfahan's luxury market might also see similar growth, appealing to those looking for value and potential returns.
Events like the LPS Shanghai 2025 spotlight properties worldwide, including Isfahan, boosting the city's profile as a prime location for luxury real estate. Such exposure can significantly enhance foreign interest.
With these factors in play, Isfahan is becoming a hot spot for foreign buyers seeking luxury properties, driven by stable exchange rates and global market trends.
Sources: NAR Realtor, PwC Mainland China and Hong Kong Luxury Market, LPS Shanghai, Exchange Rates
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6) Eased property purchase rules for foreigners will boost international investments
Isfahan has become a hotspot for foreign tourists, drawing in over half a million visitors in just nine months of 2023 and 2024.
This surge in tourism has naturally led to a higher demand for short-term rental properties, making the city an attractive option for international real estate investors.
With the local government actively supporting tourism infrastructure and Isfahan's rich cultural heritage, international buyers are increasingly interested in the city's real estate market.
In 2022, Isfahan experienced a 100% increase in foreign tourist arrivals, which directly fueled a rise in real estate transactions involving foreign nationals.
Real estate agencies have noticed a significant uptick in interest from overseas investors, largely due to Isfahan's booming tourism industry and its cultural allure.
As property prices continue to climb, the city's appeal to international investors grows, driven by both its cultural significance and the local government's efforts to enhance tourism.
Sources: NAR Realtor, Financial Tribune
7) Foreign buyers will increasingly seek properties in culturally significant areas for unique investment opportunities
Interest in investing in Iran has remained steady, even with a slight dip in foreign direct investment in 2023.
Isfahan, a city teeming with cultural heritage, is home to 23 UNESCO World Heritage sites, including the renowned Naqsh-e Jahan Square. These sites are a magnet for tourists and investors alike, drawn by the city's unique history and architecture.
With more tourists flocking to Isfahan each year, there's a noticeable trend of rising interest in cultural tourism. This surge is likely to boost demand for properties in these culturally rich areas, as foreign buyers seek unique investment opportunities.
Isfahan's cultural significance is gaining more media coverage and global awareness, with frequent mentions in travel and investment blogs. This increased visibility can attract foreign buyers eager to invest in areas with historical and cultural value.
Foreign buyers are particularly interested in properties located near these heritage sites, as they offer a unique blend of investment potential and cultural immersion. The allure of owning a piece of history in a city like Isfahan is a strong draw for those looking to diversify their investment portfolios.
As the global spotlight on Isfahan continues to grow, the demand for properties in these culturally significant areas is expected to rise, driven by foreign buyers seeking unique investments in a city rich with history.
Sources: Macrotrends, Isfahan Info, Apochi
8) Property values in newly connected areas of Isfahan will rise with the metro system expansion
The expansion of Isfahan's metro system is set to boost property values in newly connected areas.
Take Hyderabad, India, for instance. After the metro expanded, areas like Kondapur and Madhapur saw property values soar by 85.7% and 91.9%, respectively. This isn't just a one-off; Istanbul experienced similar jumps in property prices in places like Başakşehir and Kartal, thanks to better metro links.
In Iran, Tehran shows us a clear pattern: properties near metro stations are priced 20% higher on average. This bump in value is all about the ease and convenience that metro access brings, making these spots hot picks for buyers.
People love homes near public transport. Surveys highlight that properties within walking distance of metro stations are in high demand. In Isfahan, the new metro lines are expected to cut down commute times, making these areas more attractive to both locals and investors.
Urban planners and real estate experts agree: when metro access improves, demand for nearby real estate goes up, and so do property values. This trend is likely to play out in Isfahan as well, with the metro expansion making newly connected areas more desirable.
So, if you're thinking about buying property in Isfahan, keep an eye on those areas getting metro access. They might just be the next big thing in the real estate market.
Sources: Auro Realty, Consultor Groups

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.
9) New green spaces and parks will boost the appeal of nearby residential areas
New green spaces and parks can significantly boost the appeal of nearby residential areas.
In 2023, studies revealed that homes near larger green spaces often have higher property values. This trend is evident in places like Isfahan, where new parks could make properties more enticing to buyers.
Urban planning research consistently shows that green spaces enhance the quality of life. In cities like Isfahan, where such spaces are scarce, new parks could improve mental health and attract more residents.
Real estate reports highlight that homes near green spaces sell faster. Buyers appreciate the beauty and social perks of living close to parks, making these properties more desirable.
Case studies from various cities demonstrate that new parks can lead to neighborhood revitalization. In Isfahan, this could mean more foot traffic, increased business activity, and stronger community ties.
New parks in Isfahan could transform neighborhoods by boosting local engagement and creating vibrant community hubs.
Sources: MDPI, Frontiers in Public Health, MDPI
10) Virtual reality tours will become more popular, enabling buyers to explore properties from a distance
Virtual reality tours are becoming a game-changer in real estate.
Imagine exploring a cozy countryside cottage or a sprawling estate without leaving your couch. That's the magic of virtual reality (VR) tours, and they're not just a fad. The global virtual tour market is set to skyrocket from $0.96 billion in 2023 to $17.88 billion by 2035. This boom is fueled by a whopping 27.9% annual growth rate, showing just how much people are investing in this tech.
Why the buzz? Well, it's all about convenience and preference. A staggering 77% of buyers now prefer using VR to check out properties remotely. It's like having a personal open house anytime you want. Plus, 67% of home buyers are on the lookout for listings with virtual tours, and half of them would rather have a VR tour than just photos. This shift is pushing real estate companies to jump on the VR bandwagon.
Tech advancements are making VR tours more accessible and budget-friendly. AI-powered virtual tours are not only personalized but also cut down on traditional staging costs. This means you get a tailored experience without breaking the bank, making VR tours a smart choice for showcasing properties.
For those eyeing a property in the countryside, VR tours offer a sneak peek into your potential new home, all from the comfort of your current one. It's like having a personal tour guide, minus the travel. This tech is reshaping how we buy homes, making it easier and more efficient.
As VR technology continues to evolve, expect even more immersive experiences. Virtual reality tours are set to become a staple in the real estate industry, offering buyers a unique way to explore properties.
Sources: Travel and Tour World, PhotoUp, Numalis
11) Properties near universities will see higher rental yields from steady student demand
Properties near universities often see higher rental yields because students consistently need housing.
In Isfahan, universities are growing, much like the 2.5% increase in U.S. undergraduate enrollment in 2024. This steady rise in student numbers means more demand for nearby housing, which naturally boosts rental yields.
Students love living close to campus, a trend that's common worldwide. This preference pushes up demand for properties near universities, leading to higher rental prices and yields.
In Isfahan, there's a shortage of on-campus housing, so students look for off-campus places, increasing demand for nearby properties.
Investing in properties near universities can be smart because students are always looking for convenient housing, ensuring a steady rental market.
Sources: NSC Research Center, Medical University of Isfahan, Global Property Guide
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12) Isfahan’s residential property prices will rise moderately due to limited land and growing demand
In 2025, Isfahan's residential property prices are on the rise due to limited land and growing demand.
Isfahan's population is steadily climbing, with a 1.44% increase from 2024 to 2025, bringing the metro area to 2,328,000 people. This growth means more folks are hunting for homes, naturally boosting demand.
Land scarcity is a big deal here. In places like Zone Three, urban planning challenges highlight the limited land availability. As more people want homes, the lack of new housing options pushes prices up.
With Isfahan's charm and cultural appeal, it's no wonder people are flocking here. The city's rich history and vibrant lifestyle make it a desirable place to live, further fueling the demand for housing.
Investors are eyeing Isfahan, seeing potential in its growing market. Limited land and increasing demand create a promising investment opportunity for those looking to buy property.
As the city continues to grow, the balance between demand and supply remains a key factor in shaping the property market. This dynamic is something potential buyers should keep an eye on.
Sources: Macrotrends, MRP Journal
13) Older properties in central Isfahan will face price drops as buyers opt for newer, energy-efficient homes
Isfahan's real estate market is shifting towards energy-efficient homes as buyers become more conscious of sustainability.
Residents are increasingly adopting energy-saving practices, showing a keen interest in smart home technologies and appliances that cut down on energy use. This growing awareness is nudging buyers towards newer, more energy-efficient homes, leaving older properties less desirable.
The local government is on board, actively promoting energy-efficient housing as part of their sustainable development goals. By investing in tourism infrastructure and supporting these eco-friendly homes, they're creating a buzz that draws more buyers to new constructions.
Older homes in Isfahan often come with outdated infrastructure, which means higher maintenance costs. Frequent repairs and replacements of old systems make these properties less attractive to buyers who are on the lookout for cost-effective, energy-efficient options.
Real estate listings are reflecting this trend, with a noticeable demand for new constructions that boast modern amenities and energy-efficient features. Buyers clearly prefer these newer homes, seeing them as more sustainable and economical in the long run.
Sources: PSD Consulting, Legal & General, IEA
14) Property prices in Isfahan's outskirts will rise more slowly than the city center due to lower demand
The outskirts of Isfahan are expected to see slower property price increases compared to the bustling city center.
In recent years, the city center has been a hotspot for real estate, thanks to its rich cultural heritage and thriving tourism industry. This has led to a surge in demand for both short-term rentals and residential homes, making it a prime location for investors.
Market reports from 2023 and 2024 showed that the city center had higher demand and more real estate transactions than the outskirts. This mirrors trends in other major cities, where central areas with a mix of traditional charm and modern conveniences attract wealthier buyers.
Potential homebuyers often prefer central locations due to their proximity to amenities and job opportunities. The city center of Isfahan offers a wealth of cultural and social attractions, including historical sites and a robust tourism infrastructure, making it a desirable place to live.
Population density is another factor, with more people choosing to live in the city center, naturally driving up housing demand. The local government has also prioritized infrastructure development in the city center, focusing on tourism infrastructure to support sustainable growth.
This emphasis on infrastructure is crucial for accommodating the increasing number of tourists and strengthening the real estate market in the city center. Meanwhile, the outskirts, with less demand, are likely to see a more gradual price increase.
Sources: Realty NXT, Academic Journals

We have made this infographic to give you a quick and clear snapshot of the property market in Iran. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
15) Suburban rental yields will drop as more properties become available, increasing competition
Suburban areas are seeing a surge in new housing developments, especially in places like Isfahan.
The Iranian National Housing Movement is actively building more homes, with a focus on suburban regions. This has led to an increase in available properties, making it a buyer's market.
More construction permits are being issued, particularly in suburban areas, which means landlords are facing more competition to rent out their properties. This competition is causing rental prices to drop.
People are flocking to urban centers for better amenities and services, which means urban living is becoming more popular. This trend is leaving suburban rentals with higher vacancy rates.
With fewer people interested in suburban living, rental yields in these areas are declining. This is a key factor for potential property buyers to consider.
As more properties become available in the suburbs, landlords are finding it harder to fill vacancies, leading to increased competition and lower rental prices.
Sources: Tehran Times, Norada Real Estate
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.