Immediate Price Revision Demanded
Construction Costs in National Housing Movement Surge Up to Threefold
- The final cost of National Housing Movement projects is estimated to be about three times the initial figures.
- The base price per unit at the time of contract signing was about 8.5 million Toman, which could reach 16 million Toman with adjustments.
- The board member of the Tehran Builders Association called for an immediate price revision by the Ministry and the Supreme Housing Council.
According to SAMA, Iraj Rahbar, a board member of the Tehran Builders Association, has reported a significant increase in the execution costs of National Housing Movement projects compared to the signed contracts, urging the Ministry of Roads and Urban Development and the Supreme Housing Council to promptly revise the final costs of the projects. He emphasized that continuing construction with the previous prices is not feasible for builders.
Rahbar, referring to the status of the National Housing Movement projects, stated that a memorandum of understanding for 20,000 units has been signed between the Ministry of Roads and Urban Development and the builders, and in the first step, construction contracts for 10 national sites have been signed. He announced that the base price per unit at the time of contract signing was approximately 8.5 million Toman, explaining that with adjustments, this figure could rise to 16 million Toman.
Astronomical Increase in Costs
According to this board member, what is currently observed in the market and the execution process of the projects is an astronomical increase in the costs of labor, materials, and machinery, to the extent that the current final cost is estimated to be almost three times the initial figures. Rahbar, pointing out the consequences of this situation for the National Housing Movement projects, emphasized that many applicants have registered for these projects and the projects are in various stages of execution, but continuing with the previous prices has created a serious problem for builders.
The board member of the Tehran Builders Association called on the Supreme Housing Council and the Ministry of Roads and Urban Development to take immediate action to revise the final costs and execution methods of the projects, making this decision with the participation and consultation of builders. In his view, the government must also seriously intervene in this matter, as many contractors are currently facing accumulated losses, and continuing the current trend will not only slow down the projects but also undermine the trust of applicants.
