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
The Tehran real estate market remains one of the most dynamic and inflation-driven property markets in the Middle East.
In this article, we break down current housing prices in Tehran, recent price trends, and what to expect over the next 5 to 10 years.
We constantly update this blog post to reflect the latest data and market conditions.
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
- Housing prices in Tehran rose about 30% nominally from January 2025 to January 2026, but when adjusted for inflation, they actually fell by around 10%.
- In Tehran in 2026, small apartments under 80 square meters cost more per square meter than larger units because more buyers can afford the total price, creating a liquidity premium.
- The gap between listed prices and actual sale prices in Tehran is around 8%, mainly because sellers add a buffer against sudden currency swings and high inflation.
- New construction in Tehran commands a 15% premium over older homes, driven by earthquake code compliance and buyers wanting to avoid unpredictable renovation costs.
- The cheapest neighborhoods in Tehran like Yaftabad have prices around 600 million IRR per square meter, while luxury areas like Elahiyeh reach over 3 billion IRR per square meter.
- Tehran property prices have increased 9 to 14 times over the past five years, but most of this reflects currency devaluation rather than real wealth creation.
- District 5 in western Tehran (Poonak, Jannat Abad) attracts young families seeking livable neighborhoods at prices roughly 40% below premium northern districts.
- The Central Bank of Iran stopped publishing its monthly Tehran housing transaction report in late 2024, creating a data gap that makes price tracking more challenging.
What are the current property price trends in Tehran as of 2026?
What is the average house price in Tehran as of 2026?
As of early 2026, the average property price in Tehran is approximately 1.45 billion Iranian rials per square meter (around $1,160 USD or €1,050 EUR at open market rates), though this figure represents mostly apartments since they dominate the Tehran market.
To put this in perspective, a typical 75 square meter apartment in Tehran would cost around 109 billion rials (roughly $87,000 USD or €78,000 EUR), though prices vary dramatically depending on location and building quality.
The realistic price range that covers about 80% of property purchases in Tehran spans from 1.1 to 1.9 billion IRR per square meter (roughly $880 to $1,520 USD or €800 to €1,370 EUR per square meter), with southern districts at the lower end and northern areas pushing well above the upper limit.
How much have property prices increased in Tehran over the past 12 months?
Property prices in Tehran increased by approximately 30% in nominal rial terms between January 2025 and January 2026, though this headline figure masks a more complex reality when you account for Iran's high inflation.
Across different property types, the price increases ranged from about 25% for older apartments in less desirable areas to 35% or more for newer buildings in high-demand western and northern neighborhoods.
The single biggest factor driving this price movement was Iran's persistent high inflation (running around 40-50% annually), which pushes buyers to treat Tehran real estate as a store of value and hedge against currency depreciation.
Which neighborhoods have the fastest rising property prices in Tehran as of 2026?
As of early 2026, the neighborhoods with the fastest rising property prices in Tehran are Poonak and Jannat Abad in District 5 (western Tehran), Chitgar near the lake in District 22 (northwest), and Tehranpars in District 4 (east), all of which attract buyers seeking "north-like" quality at lower prices.
These three areas have seen annual price growth of approximately 35-40% for Poonak and Jannat Abad, 38-45% for Chitgar's newer developments, and 32-38% for Tehranpars, all outpacing the Tehran average.
The main demand driver is straightforward: families and investors are trading down from ultra-premium northern Tehran to find newer apartments with better space and amenities at prices they can actually afford, concentrating demand in these "second-tier premium" zones.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Tehran.
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.
Which property types are increasing faster in value in Tehran as of 2026?
As of early 2026, the ranking of property types by value appreciation rate in Tehran is: mid-market apartments (60-90 square meters) growing fastest, followed by smaller budget apartments (under 60 square meters), then houses and villas in premium northern pockets, and finally older unrenovated units which lag behind.
The top-performing property type, mid-market apartments in newer buildings, has appreciated approximately 32-38% over the past year in desirable locations like District 5 and parts of District 4.
The main reason mid-market apartments outperform is liquidity: they match what most Tehran buyers can actually afford and what renters want, so they trade more frequently and reprice faster than either tiny units or expensive houses.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- 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?
What is driving property prices up or down in Tehran as of 2026?
As of early 2026, the three main factors driving property prices in Tehran are persistent high inflation (40-50% annually) pushing buyers toward hard assets, limited quality housing supply in desirable neighborhoods, and household formation continuing even as population growth slows.
The factor with the strongest upward pressure is inflation and currency expectations, which transforms Tehran real estate into a wealth preservation vehicle for families who don't trust the long-term purchasing power of holding rials in bank accounts.
Get fresh and reliable information about the market in Tehran
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What is the property price forecast for Tehran in 2026?
How much are property prices expected to increase in Tehran in 2026?
As of early 2026, property prices in Tehran are expected to increase approximately 25% in nominal rial terms over the full calendar year, though this translates to roughly flat or slightly negative returns when adjusted for inflation.
The realistic range of forecasts from different analysts spans from +10% (if affordability constraints sharply reduce transaction volumes) to +40% (if inflation and currency pressures intensify further and housing demand surges).
The main assumption underlying most price increase forecasts for Tehran is that Iran's high-inflation environment will persist through 2026, keeping real estate attractive as a hedge even as affordability becomes increasingly stretched for ordinary buyers.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Tehran.
Which neighborhoods will see the highest price growth in Tehran in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Tehran are Poonak and Shahrak-e Gharb edges in District 5, the Chitgar lake corridor in District 22, and select central streets in Yousef Abad and Sohrevardi where scarcity and access command premiums.
The projected price growth for these top neighborhoods ranges from 30-45% in nominal terms for 2026, outpacing the citywide average by 5-15 percentage points.
The primary catalyst is buyer migration: as ultra-premium north Tehran prices become unreachable for all but the wealthiest, demand concentrates in areas that offer similar livability and newer buildings at 30-50% lower price points.
One emerging neighborhood that could surprise with higher-than-expected growth is Hakimiyeh in District 4 (east Tehran), which offers newer construction and more space per rial than established west-side alternatives, potentially attracting overflow demand.
What property types will appreciate the most in Tehran in 2026?
As of early 2026, the property type expected to appreciate the most in Tehran is mid-market apartments in the 60-90 square meter range, particularly newer or well-renovated units in high-demand districts like District 5 and District 22.
The projected appreciation for these top-performing mid-market apartments is 30-38% in nominal terms over 2026, benefiting from both end-user demand and investor interest.
The main demand trend driving this appreciation is the "sweet spot" effect: these apartments match what most Tehran buyers can realistically afford while also satisfying renters, creating deep liquidity that supports faster price discovery.
The property type expected to underperform is older, unrenovated apartments in less desirable southern districts, which may see only 15-20% nominal growth as buyers increasingly prioritize quality and earthquake-code compliance over rock-bottom prices.
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.
How will interest rates affect property prices in Tehran in 2026?
As of early 2026, high interest rates in Iran are expected to act primarily as a brake on transaction volume rather than a direct driver of price declines, because most Tehran property purchases are cash-based and mortgage penetration remains low.
The current benchmark rates for Iranian mortgages run around 22-30% annually, and these elevated rates are expected to remain high throughout 2026 given the inflationary environment.
A 1% change in interest rates typically has a muted direct effect on Tehran property prices compared to markets with deep mortgage financing, but sustained high rates do squeeze out marginal buyers and slow transaction velocity, which can eventually cool price growth.
You can also read our latest update about mortgage and interest rates in Iran.
What are the biggest risks for property prices in Tehran in 2026?
As of early 2026, the three biggest risks for property prices in Tehran are an affordability shock (if incomes lag inflation even further and transaction volumes collapse), policy or regulatory disruptions (like the recent pause in official housing data), and construction cost spikes from currency-linked material imports.
The risk with the highest probability of materializing is the affordability squeeze: with housing costs rising faster than wages and mortgage access limited, the pool of qualified buyers could shrink significantly, forcing sellers to hold properties off-market rather than accept lower prices.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Tehran.
Is it a good time to buy a rental property in Tehran in 2026?
As of early 2026, it can be a reasonable time to buy a rental property in Tehran if you focus on liquid mid-market apartments in high-demand locations and plan to hold for the long term, though entry timing matters less than choosing the right property.
The strongest argument in favor of buying now is that Tehran rents are rising sharply (around 35% year-over-year), replacement costs keep climbing with inflation, and rental demand is supported by many households being priced out of ownership entirely.
The strongest argument for waiting is that transaction volumes are thin, the gap between asking and closing prices remains wide (around 8%), and a worsening affordability crisis could eventually force some price correction even if nominal falls are rare in Iran.
You'll also find a dedicated document about this specific question in our pack about real estate in Tehran.
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.
Where will property prices be in 5 years in Tehran?
What is the 5-year property price forecast for Tehran as of 2026?
As of early 2026, property prices in Tehran are expected to increase by approximately 200% cumulatively over the next 5 years in nominal rial terms (roughly a 3x multiple), though real inflation-adjusted returns will likely be much more modest.
The range of 5-year forecasts spans from a conservative 150% cumulative gain (if inflation moderates and affordability constraints bite harder) to an optimistic 300%+ gain (if currency and inflation pressures intensify further).
The projected average annual appreciation rate over the next 5 years in Tehran is approximately 25% in nominal terms, which sounds dramatic but largely reflects the expected inflation environment rather than real wealth creation.
The key assumption most forecasters rely on is that Iran's high-inflation regime will persist without a major policy reset or external shock that fundamentally changes the macroeconomic picture.
Which areas in Tehran will have the best price growth over the next 5 years?
The top three areas in Tehran expected to have the best price growth over the next 5 years are District 5 (Poonak, Jannat Abad, Shahran) for broad family demand, District 22 (Chitgar lake corridor) for newer lifestyle developments, and upper-east pockets like Tehranpars and Hakimiyeh where space value attracts upgraders.
The projected 5-year cumulative price growth for these top-performing areas is 220-280% in nominal terms, roughly 10-30 percentage points above the citywide average.
This 5-year forecast is largely consistent with our shorter 2026 outlook because the same fundamentals apply: buyers seeking "north-like" quality at accessible prices will continue concentrating demand in these areas, just compounded over more years.
The currently undervalued area with the best potential for outperformance over 5 years is the eastern stretch of District 4, particularly areas benefiting from metro expansion and newer construction that hasn't yet been fully priced in.
What property type will give the best return in Tehran over 5 years as of 2026?
As of early 2026, the property type expected to give the best total return over 5 years in Tehran is liquid mid-market apartments (60-90 square meters) in newer or well-renovated buildings located in high-demand districts like District 5 or select central areas.
The projected 5-year total return (appreciation plus rental income) for these top-performing apartments is approximately 250-300% in nominal terms, combining price growth of around 200% with cumulative rental yields of 5-7% annually.
The main structural trend favoring mid-market apartments over the next 5 years is demographics: Tehran's population keeps growing (approaching 10 million), household formation continues, and most new households can only afford this segment.
For investors seeking the best balance of return and lower risk over 5 years, well-located 70-85 square meter apartments in established areas like Yousef Abad or Sohrevardi offer strong liquidity, consistent rental demand, and lower volatility than speculative new-build areas.
How will new infrastructure projects affect property prices in Tehran over 5 years?
The top three major infrastructure projects expected to impact property prices in Tehran over the next 5 years are the ongoing Tehran Metro expansions (particularly Lines 6 and 7 completion plus Lines 8-10 development), the Tehran-North Freeway improving access to northwestern areas, and urban renewal projects in select central districts.
The typical price premium for properties near completed infrastructure projects in Tehran is 10-20% above comparable properties further from new metro stations or improved road access.
The specific neighborhoods that will benefit most from infrastructure developments are areas along the Line 7 extension toward Yousef Abad, the District 22 Chitgar corridor with improved connectivity, and eastern Tehran areas getting better metro coverage through Line 4 branches.
How will population growth and other factors impact property values in Tehran in 5 years?
Tehran's population is projected to grow approximately 1.2% annually over the next 5 years (reaching about 10.2-10.4 million by 2031), and this steady growth will support underlying housing demand even as household sizes shrink and drive up per-household space requirements.
The demographic shift with the strongest influence on Tehran property demand is household fragmentation: even with slower population growth, more young adults forming independent households means more total units needed, particularly in the affordable and mid-market segments.
Migration patterns, particularly rural-to-urban movement from other Iranian provinces and internal moves from southern to northern/western Tehran, are expected to keep demand concentrated in the city's more livable districts while southern areas benefit from spillover when prices elsewhere become unaffordable.
The property types and areas that will benefit most from these demographic trends are mid-size apartments in family-friendly western districts (District 5) and emerging eastern areas (District 4), where new household formation is strongest and school/transit access supports long-term demand.
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 is the 10 year property price outlook in Tehran?
What is the 10-year property price prediction for Tehran as of 2026?
As of early 2026, property prices in Tehran are expected to increase by approximately 800% cumulatively over the next 10 years in nominal rial terms (roughly a 9x multiple), though this dramatic-sounding figure largely reflects expected inflation rather than real wealth creation.
The range of 10-year forecasts spans from a conservative 500% cumulative gain (if monetary policy achieves meaningful credibility improvements) to over 1,200% (if inflation accelerates further or currency crises intensify).
The projected average annual appreciation rate over the next 10 years in Tehran is approximately 25% in nominal terms, though with significant year-to-year volatility depending on inflation spikes and policy changes.
The biggest uncertainty factor in making 10-year property price predictions for Tehran is the future of Iran's inflation regime: whether policy reforms or external changes could fundamentally alter the current high-inflation equilibrium is impossible to predict with confidence.
What long-term economic factors will shape property prices in Tehran?
The top three long-term economic factors that will shape property prices in Tehran over the next decade are the inflation regime and Central Bank monetary credibility, foreign exchange stability and integration with global trade, and construction sector productivity (including material costs and labor availability).
The single long-term factor with the most positive potential impact on Tehran property values is a credible reduction in inflation: if inflation fell to single digits sustainably, real estate would still appreciate but the frenzy of "buy now before prices rise further" would moderate into healthier, more sustainable growth.
The single long-term factor posing the greatest structural risk to Tehran property values is a severe affordability crisis: if the gap between property prices and household incomes widens too far, transaction volumes could collapse even as nominal prices remain elevated, creating a frozen market with little real liquidity.
You'll also find a much more detailed analysis in our pack about real estate 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 |
|---|---|---|
| Central Bank of Iran - Tehran Housing Report | It's the central bank's official statistical publication for Tehran transaction prices. | We used it as the anchor "transaction-based" price per square meter level for Tehran. We also used its district-by-district price table to ground neighborhood comparisons. |
| Central Bank of Iran - Data Access Notice | It's the official explanation for why CBI's monthly Tehran housing report stopped. | We used it to be transparent about the data gap after mid/late 2024. We used it to justify why we triangulate with other official datasets for 2025-2026. |
| Statistical Center of Iran - CPI Releases | SCI is Iran's official statistics agency and CPI is the standard inflation reference. | We used SCI CPI as the "macro inflation reality check" for the environment Tehran prices operate in. We used it to frame nominal versus real price movement. |
| IMF World Economic Outlook (October 2025) | The IMF is a top-tier institution with transparent, regularly-updated macro forecasts. | We used it to ground the 2026 macro backdrop that typically drives property pricing. We translated inflation and growth forecasts into housing demand implications for Tehran. |
| Statistical Center of Iran - Data Portal | It's the official index of SCI statistical tables and publications. | We used it to cross-check what official series exist for housing and prices. We used it as a verification trail for readers wanting to find SCI datasets. |
| Tehran Province Statistical Portal | It's an official provincial-level statistics portal that republishes official data. | We used it as a secondary sanity check for Tehran-specific dashboards. We used it to keep the Tehran angle strong rather than relying only on national averages. |
| Living in Tehran - Regional Price Analysis | It provides granular neighborhood-level price data updated regularly. | We used it to validate district-level price ranges across Tehran's 22 regions. We cross-referenced their data with official CBI district breakdowns. |
| Trading Economics - Iran Inflation | It aggregates official economic indicators with historical tracking. | We used it to confirm current inflation levels and recent trends. We cross-referenced with SCI official releases for consistency. |
| MacroTrends - Tehran Population | It provides UN-sourced population data with historical trends and projections. | We used it to project Tehran's population growth over 5 and 10 years. We applied these demographics to housing demand forecasts. |
| World Population Review - Tehran | It compiles demographic data from authoritative international sources. | We used it to validate population projections and density figures. We used it to understand demographic shifts affecting housing demand. |
| Wikipedia - Tehran Metro | It provides well-sourced documentation of metro expansion plans and timelines. | We used it to identify infrastructure projects affecting property values. We tracked which lines and stations impact specific neighborhoods. |
| Railway Gazette - Tehran Metro Extensions | It's a respected industry publication covering rail infrastructure globally. | We used it to confirm recent metro line openings and expansion progress. We applied this to neighborhood infrastructure premium analysis. |
| World Bank - Iran Economic Overview | The World Bank provides authoritative macro-economic analysis and forecasts. | We used it to understand fiscal and inflation pressures affecting affordability. We incorporated their poverty and growth projections into our risk analysis. |
| Iran TBS - Housing Market Outlook | It provides in-depth analysis of Iranian housing market dynamics and scenarios. | We used it to validate our price growth scenarios and affordability analysis. We cross-referenced their historical data with official CBI figures. |
| Iran International - Rental Market Report | It provides current reporting on Iran's housing and rental market conditions. | We used it to confirm rental inflation trends (around 35% annually). We applied rental market data to our buy-to-let analysis. |
| Eghtesad Online - CBI Housing Coverage | It provides English-language coverage clearly attributing figures to CBI reports. | We used it only as a cross-check that our reading of CBI district spreads is consistent. We do not use it as the main source when the official PDF has the data. |
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If you want to go deeper, you can read the following: