The price of housing in Tehran has grown by 30% compared with last year, and the western part of Tehran, especially small apartments have seen the largest growth. Shahrvand writes that the price of construction material has seen a similar growth which has increased construction costs. Estimates show that last year the cost of construction was on average 12 million IRRs. This year, the cost has risen to 16 to 17 million IRRs (381 USD). The reduction of banking profits is among the reasons pushing investors towards the real estate market. Shahrvand writes that 80% of wealth in Iran is dedicated to housing and commercial real estate.
