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What is happening in Mashhad’s real estate market? Are prices on the rise or decline? Is Mashhad still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers alike, from the bustling streets of Mashhad to its serene outskirts. Perhaps you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Mashhad real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.

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1) Student influx in Mashhad will boost demand for rentals near universities
The influx of students in Mashhad is set to drive demand for rental properties near universities.
With 24,186 students enrolled at Ferdowsi University and 8,500 at Mashhad University of Medical Sciences, the city is buzzing with young scholars. This surge in student numbers is a big reason why housing demand is climbing. Many students are looking for places off-campus, which offer more choices and convenience.
Living off-campus is popular because it gives students more freedom and options. This trend, along with the growing student body, means there aren't enough places to live near the universities. As a result, the demand for rental properties is shooting up.
As more students look for housing, rental prices in these areas are likely to increase. This situation is catching the eye of investors who see a chance to build new student housing projects. These projects are crucial to keep up with the rising demand.
Investors are particularly interested in these neighborhoods because they know that students are willing to pay for convenience. The potential for higher rental income makes these areas attractive for new developments.
With the student population continuing to grow, the need for more housing options is becoming urgent. This creates a ripe opportunity for those looking to invest in the rental market near Mashhad's universities.
Sources: EduRank, Brookfield Oaktree, EduRank, RocApply
2) Mashhad's southern neighborhoods will attract more foreign buyers with new international business ventures
Foreign buyers are increasingly eyeing Mashhad's southern neighborhoods due to new international business ventures.
Located near Afghanistan, Pakistan, and Central Asia, Mashhad serves as a crucial hub for international trade. This strategic position has led to the creation of special economic zones like Sarakhs and Dogharoon, which are drawing in global businesses.
In Khorasan Razavi, where Mashhad is situated, significant investments in infrastructure and trade corridors are underway. These developments not only support business growth but also have the potential to increase property values, making the area more appealing to foreign investors.
One standout project is the transformation of the Southern Transport Belt into a Green Belt, highlighting Mashhad's commitment to sustainable urban development. This initiative could attract foreign businesses focused on eco-friendly projects.
The government is also offering incentives for foreign investment, including access to a large pool of skilled labor at competitive costs. With well-developed infrastructure like telecommunications, roads, airports, and railways, Mashhad provides a conducive environment for foreign investment.
Adding to its appeal, Mashhad hosts consulates from eight countries, indicating a vibrant expatriate community. This presence could further entice foreign buyers interested in both living and investing in the area.
Sources: MCCIMA, Britannica

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.
3) Mashhad's affordable housing market will attract more foreign buyers seeking investment opportunities
Mashhad is becoming a hot spot for foreign property investors looking for affordable housing options.
With property prices in Tehran skyrocketing to 833.12 million rials per square meter, Mashhad's lower prices are catching the eye of savvy investors. The city is not just about affordability; it also draws in around 25 million visitors each year, mainly for religious tourism, which boosts the local economy and increases real estate demand.
Mashhad's infrastructure is on the rise, with significant developments in its hospitality sector. The city boasts the highest number of four- and five-star hotels in Iran, making it a magnet for tourists and investors alike. This growth in infrastructure supports the real estate market, making it a promising investment opportunity.
While we don't have exact numbers on foreign nationals buying property in Mashhad, the trend is clear: foreign interest in Iranian real estate is on the rise. Favorable exchange rates make Iranian properties even more appealing to international buyers, and Mashhad is well-positioned to benefit from this trend.
Investors are increasingly looking beyond Tehran, and Mashhad's combination of affordability and growth potential makes it a prime target. The city's expanding infrastructure and tourist appeal are key factors driving this interest.
As Mashhad continues to develop, its real estate market is likely to attract more foreign buyers, drawn by the city's unique blend of affordability and opportunity.
Sources: Iran Focus, Sapphire Properties
4) Foreign interest in Mashhad properties near cultural and religious sites will increase
Mashhad is becoming a hotspot for foreign property buyers due to its cultural and religious allure.
In the last Iranian calendar year, foreign visitors to Mashhad increased by 99%, thanks to more international flights landing at Mashhad Airport. This surge in tourism naturally boosts interest in local real estate, especially near popular attractions.
The Iranian government is actively promoting Mashhad as a cultural and religious tourism hub. By participating in international exhibitions and forming global partnerships, they've successfully showcased Iran's unique cultural offerings. This not only attracts more tourists but also piques the interest of foreign investors eager to tap into the growing tourism industry.
Mashhad is also ramping up its infrastructure to welcome more visitors. The city now features numerous five-star hotels, hostels, and guest houses, along with a variety of cultural and historical sites. This development makes the area more appealing to foreign buyers interested in properties conveniently located near these attractions.
For those considering investing, Mashhad offers a unique blend of cultural richness and modern amenities. The city's strategic efforts to enhance its tourism appeal are paying off, drawing both tourists and investors alike.
With its growing reputation and improved infrastructure, Mashhad is poised to see even more foreign interest in its real estate market, particularly near its cultural and religious sites.
Sources: Tehran Times, Travel and Tour World
5) Property prices in central Mashhad will stabilize as new developments decelerate
Central Mashhad is seeing fewer new property developments these days.
One reason is the 2.4% drop in total construction in 2024, which includes both homes and other buildings. This means fewer new projects are starting, which helps keep property prices steady. Real estate agents are also noticing that the number of property listings isn't growing much, suggesting a more stable market.
The National Association of REALTORS (NAR) reports that inventory levels are slowly improving, and they expect this trend to continue into 2025. This is partly because mortgage rates are stabilizing, making it easier for people to buy homes. As a result, the housing market in Central Mashhad might become more balanced.
Government data shows a slowdown in urban development projects too. While there are big projects happening in Mashhad, they aren't fully meeting sustainability goals, which might slow them down. This shift could mean fewer new developments, helping to stabilize property prices even more.
In the background, megaprojects in Mashhad are increasing, but their progress isn't as fast as expected. This is because they aren't fully aligned with sustainability goals, which could be causing delays. These factors together suggest that property prices in Central Mashhad are likely to remain stable.
Overall, the combination of fewer new developments, improving inventory levels, and a focus on sustainability is contributing to a more stable property market in Central Mashhad.
Sources: National Association of REALTORS, Mashhad Megaprojects Analysis, 2025 Construction Outlook
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6) Mashhad's northern areas will see a slight price rise due to limited land availability
The northern areas of Mashhad are seeing a slight uptick in property prices because there's just not much land left to build on.
Imagine the Mashhad Valley as a big bowl with some cracks—these are the Quaternary faults that make it tough to find new spots for construction. This natural setup means that land is scarce, and when something is hard to come by, prices tend to go up.
Over the years, the northern parts of Mashhad have been a hot spot for price hikes. The valley floor is sinking a bit, especially in the northwest, which has made these areas more attractive for homebuyers. More people wanting to live there means higher demand, and you guessed it, higher prices.
Urban planners have their hands full with these geological quirks. They have to think about how to manage water resources wisely, which adds another layer of complexity. Limited land and careful planning mean property values keep climbing. Plus, the government has zoning rules to make sure the city grows in a sustainable way, which often means saying no to new builds in the north.
So, if you're eyeing property in northern Mashhad, know that the land is a hot commodity because of these natural and regulatory factors. It's a bit like trying to find a rare gem—there's only so much to go around.
Source: Oxford Academic
7) Mashhad's affordable housing prices will rise moderately as demand from young families grows
Mashhad's population is on the rise, growing by 1.42% annually and now exceeding 3.4 million people.
As more people flock to the city, the demand for housing is naturally increasing. Many of these newcomers are young families leaving rural areas, drawn by the promise of better jobs and living conditions.
These families are particularly interested in affordable housing options, which are becoming harder to find. The city is experiencing a shortage of such units, a trend seen in many urban areas worldwide.
With this shortage, prices for affordable housing are expected to climb. Young families, eager to settle in, are driving this demand, making it a competitive market.
Insider knowledge suggests that the moderate price increase in affordable housing is inevitable as the city continues to grow and attract more residents.
For those considering a move to Mashhad, understanding these dynamics is crucial. The city's growth and the rising demand for housing are shaping its real estate market.
Sources: World Population Review, Informal Settlements and Sustainable Urban Development Case Study, National Low Income Housing Coalition (NLIHC) - Gap Report 2024
8) Central Mashhad will see a slight drop in rental yields as property availability increases
The construction scene in Mashhad is buzzing, with new residential projects popping up everywhere.
With all these new homes, rental units are flooding the market, which might mean landlords will see a dip in what they earn from rents. More homes mean more choices for renters, and that can lead to lower rental yields as landlords try to fill their properties.
As these properties keep coming, vacancy rates are expected to climb. This means more empty apartments waiting for tenants, and landlords might have to cut rents to get people in the door.
The government is also playing a part by offering incentives for developers, which is pushing even more construction. This adds to the supply, making it a renter's market and putting pressure on rental prices.
With all these factors, landlords are in a bit of a bind, trying to attract tenants in a market that's getting more competitive by the day.
Source: Wall Street Prep

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.
9) Rental yields in Mashhad's eastern suburbs will rise with improved amenities
Mashhad's eastern suburbs are seeing a boost in rental yields thanks to better amenities.
One big reason for this is the rise in property development projects in the area. The "Hot 100 Suburbs to Watch in 2025" report points out that neighborhoods getting a facelift and new businesses are enjoying strong rental returns. In Mashhad, these new developments are not just lifting the local economy but also pushing up property values.
Population density is another key factor. Take District 4, for example, where the density is nearly 20,000 people per square kilometer. This is much higher than other parts of the city, showing a strong demand for rentals as more people want to live in these well-connected areas with lots of amenities.
The southern Beltway project turning into a green belt has been a real game-changer. It's not just about making life better for residents; it's also opened doors for new shopping centers, schools, and healthcare facilities. These new amenities are making the area more appealing to renters, which in turn is driving up rental yields.
With these changes, Mashhad's eastern suburbs are becoming a hot spot for renters. The combination of new developments, high population density, and improved amenities is creating a perfect storm for increased rental returns.
Investors are taking note, as these factors are making the area a promising place for property investment. The ongoing improvements and the influx of new residents are setting the stage for continued growth in rental yields.
Sources: Scottish Government Infrastructure Investment Plan, AIPH Green City Case Studies, Realestate.com.au
10) Property values near green spaces and parks in Mashhad will increase
Green spaces and parks in Mashhad are set to increase nearby property values.
Take a look at Boulder, Colorado, where homes next to greenbelts are valued 32% higher than those further away. This isn't just a local phenomenon; it's a trend seen in places like Birmingham, UK, too. People love living near parks, and this preference naturally boosts property demand and prices.
Why do people flock to these areas? Well, green spaces are known to improve both mental and physical health, making them highly desirable. When buyers are on the hunt, they often prioritize homes near parks, which drives up property values even more.
There's also an economic angle. Parks increase foot traffic, which can lead to more business activity and a stronger local economy. This, in turn, can significantly raise property values, as seen in urban renewal projects like the one in the Village of Germantown.
In Mashhad, the Southern Transport Belt is being transformed into a recreational green belt, a move that’s expected to enhance property values in the area. Government initiatives that focus on integrating green spaces into urban planning are likely to attract more investment, further boosting property values.
So, if you're considering buying property in Mashhad, keep an eye on areas near these new green spaces. They’re not just good for your health; they’re a smart investment, too.
Sources: AIPH, Crompton Study, NRPA
11) Rental yields in Mashhad's southern districts will rise with new job opportunities in the area
In 2023 and 2024, the Mashhad Metro project transformed the southern districts with new urban rail lines.
This major infrastructure investment is a magnet for businesses, bringing more job opportunities to the area. With the extension of Line 1 reaching Mashhad International Airport and the construction of Line 2, public transportation options have significantly improved. This makes the southern districts more accessible and appealing to potential renters.
Government backing for projects like the Mashhad Metro not only boosts transportation but also enhances the area's overall livability. Such improvements often lead to a higher demand for rental properties, as people prefer living closer to emerging job markets.
As the southern districts become better connected to major employment hubs, the attractiveness of these areas to renters is on the rise. This trend is likely to continue, driving rental yields upward as more people seek the convenience of living near new job opportunities.
With these developments, the southern districts of Mashhad are poised for growth, making them a smart choice for property investment. The combination of improved infrastructure and job creation is a recipe for increased rental demand in the coming years.
Sources: Railway Technology
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12) Mashhad rental prices will increase in areas with new educational institutions
In Mashhad, new educational institutions are driving up rental prices.
When a new school or college opens, more students flock to the area, creating a surge in housing demand. This isn't just a theory; it's a pattern seen in cities worldwide. As students look for places to live close to their campuses, landlords often seize the opportunity to raise rents.
In Mashhad, areas with established universities have already experienced this trend. Rental prices have climbed steadily as enrollment numbers rise. So, it's reasonable to expect that new educational institutions will have a similar impact on the local housing market.
Students and faculty members typically prefer living near their schools, which naturally increases demand for nearby housing. This preference is a key factor in why rental prices tend to spike in these areas. Local real estate agents often report a noticeable influx of people moving into neighborhoods with new educational facilities.
As the local population grows due to these new institutions, the demand for housing intensifies. This increased demand is a major reason why rental prices are expected to rise in these areas. It's a cycle: more students mean more demand, which leads to higher rents.
For potential property buyers, understanding this dynamic can be crucial. Investing in areas near new educational institutions could be a smart move, as rental income is likely to increase over time.
Sources: MIT Housing Report, Housing Market Dynamics
13) Mashhad's eastern suburbs will gain popularity with better public transportation links
The eastern suburbs of Mashhad are becoming a hot spot thanks to major upgrades in public transportation.
With the Mashhad Metro expanding, including the much-anticipated Line Four, property values near transit hubs are climbing. This line will stretch 17.5 kilometers and feature six stations, two conveniently located by the Imam Reza shrine.
Living close to these transit lines is a smart move, as homes within a half-mile of quality transit are valued over 15% higher than those further away. As the metro network grows, expect these areas to become even more appealing to buyers.
The government is clearly focused on boosting the eastern suburbs, with plans like Line Three, which will connect Shahrak-e-Abuzar to Elahiyeh Boulevard. This shows a strategic push to enhance public transport in these neighborhoods.
Urban planning documents back this up, highlighting a priority on developing the eastern suburbs through better transportation links. This means more convenience and potentially higher property values for residents.
For those considering a move, the eastern suburbs of Mashhad offer a promising future with improved access and rising property values.
Sources: Surfiran, Tolj Commercial, Tap Persia
14) Mashhad will offer new property tax incentives to boost investment in affordable housing
Mashhad is grappling with a surge in demand for affordable housing.
In 2023 and 2024, reports showed that rental prices skyrocketed, even for tiny rooms, making it clear that affordable housing options are desperately needed. The government has been aware of these housing shortages, especially for those who need it most. The Mehr Housing Project was a step in the right direction, but it hasn't fully solved the problem due to various limitations.
With Mashhad's population growing rapidly, the demand for affordable housing is only increasing. This growth, combined with economic studies showing that past efforts have fallen short for low-income communities, makes a strong case for new property tax incentives to encourage investment in affordable housing.
Demographic trends reveal that Mashhad's population is expanding quickly, which only adds to the pressure on the housing market. Economic studies have highlighted that previous initiatives have not effectively met the needs of low-income residents, further emphasizing the need for fresh strategies.
Given these challenges, introducing new property tax incentives could be a game-changer. These incentives would aim to attract investment in affordable housing, addressing the pressing need for more options in the market.
Sources: Iran Focus, Politesi

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.
15) Mashhad's new zoning rules will restrict high-rise developments in specific areas
Mashhad is tightening its zoning rules to curb high-rise buildings in specific areas.
Local officials are responding to concerns about population density and environmental impact. These issues are common in many cities, but Mashhad is taking a proactive approach. Urban planners have warned that without these restrictions, the city could face overcrowding and infrastructure problems.
Residents in Mashhad are voicing their worries about how high-rise buildings might affect their daily lives. Surveys show a strong preference for zoning that considers community needs. People want to ensure that development doesn't come at the cost of their quality of life.
Environmental studies have also played a role in shaping these new regulations. High-rise buildings can negatively impact local ecosystems, and Mashhad is keen to protect its natural resources. This has been a significant factor in the decision to limit such developments.
Interestingly, Mashhad's approach is not unique. Franklin, Tennessee, has been a model for similar zoning changes. Their zoning ordinance has inspired cities worldwide to rethink how they manage urban growth.
These changes reflect a broader trend where cities are becoming more mindful of sustainable urban planning. Balancing economic growth with environmental and community concerns is now a priority for many urban areas.
Sources: Franklin Zoning Ordinance, Planetizen, PSE Law
16) Stricter environmental regulations in Mashhad will affect new residential projects
Mashhad's air quality has been a growing concern, with the air quality index (AQI) hitting 115, which is considered poor.
In response, the government is taking action. The Ministry of Roads and Urban Development has been in talks with Mashhad's Mayor, emphasizing the need for environmental protection and sustainable urban growth. This is in line with Iran's existing environmental laws.
Locals are also pushing for greener spaces. A notable project is the transformation of the southern beltway into a green belt, which aims to reduce pollution by planting trees and limiting car traffic. This reflects the community's desire for a healthier environment.
Local media has been instrumental in highlighting the health risks of air pollution, likening it to smoking 1.6 cigarettes a day. This has increased public demand for stricter regulations.
Residents are increasingly aware of the health implications of poor air quality, which has led to a push for tighter environmental controls on new residential projects.
17) Demand for family-friendly neighborhoods in Mashhad will grow as birth rates rise
Mashhad is becoming a hotspot for family-friendly neighborhoods as more young families choose to settle there.
With a growing young population, urban planners are focusing on family-friendly infrastructure like parks and community centers. These spaces are crucial for families with kids, offering them places to play and socialize.
Real estate ads in Mashhad are now targeting families, emphasizing larger homes and nearby parks. This shift in marketing shows that developers are keenly aware of the changing needs of the city's residents.
Local businesses are also adapting, with growth in sectors like education, healthcare, and entertainment that cater to families. This makes it easier for families to access essential services without traveling far.
As Mashhad's birth rates rise, the demand for family-friendly neighborhoods is expected to increase. This trend is shaping the city's future, making it a more attractive place for families to live.
Sources: MacroTrends, UNICEF Iran
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18) Mashhad's luxury property prices will drop as demand moves towards affordable housing
Mashhad's luxury property market is facing a potential price decline due to several emerging trends.
One major factor is the rising inventory of unsold luxury properties. While specific data for Mashhad isn't available, we can look at similar markets like Florida and Arizona, where unsold homes have jumped by 70% in the past year. This trend suggests that Mashhad might experience a similar situation, with more luxury homes sitting on the market.
There's also a noticeable shift in consumer preferences towards more affordable housing options. The National Housing Movement in Mashhad is a clear indicator of this trend, as it plans to build 4 million budget-friendly homes. This massive construction effort is likely to draw interest away from luxury properties, making them less appealing as affordable options become more accessible.
Government policies are further influencing this shift. Initiatives like providing free land to young couples and building affordable housing units are making budget-friendly homes more attractive. These policies are designed to promote affordable housing, which could discourage investment in the luxury market.
Insider knowledge suggests that local buyers are increasingly prioritizing practicality over luxury. With the economic landscape changing, many are opting for homes that offer value for money rather than high-end features. This change in mindset is contributing to the declining interest in luxury properties.
As more affordable housing becomes available, the demand for luxury properties is expected to decrease. This shift is not just a temporary trend but a reflection of a broader change in the housing market dynamics in Mashhad.
Sources: HousingWire, Tehran Times
19) Mashhad's eastern suburbs will see rising real estate demand as young professionals move in
Property prices in central Mashhad have been climbing, making it tough for young professionals to afford living there.
Over in Mashhad's eastern suburbs, there's a buzz of new residential projects popping up. These areas are getting new parks, recreational facilities, and urban spaces aimed at attracting young families and professionals. Plus, with better transportation links, commuting to the city center is a breeze, offering the perks of suburban life without the hassle.
Young professionals are leaning towards the suburbs for more spacious living and a higher quality of life. The government is sweetening the deal with incentives for real estate development in these areas, making them even more appealing. The eastern suburbs are not just growing in size but also in charm, with new amenities and infrastructure like recreational facilities and cultural centers.
These developments are turning the eastern suburbs into a hotspot for young families and professionals. The area is becoming a vibrant community with everything from shopping centers to cultural hubs, making it a desirable place to settle down.
As more young professionals move to these suburbs, the local real estate demand is shifting. This trend is reshaping the housing market, with more people looking for homes that offer both comfort and convenience.
Sources: Numbeo, AIPH, Shishdong
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.