Central Bank Raises Housing Loan Ceilings to Boost Construction and Home Purchases

Iran’s construction industry has received a welcome boost from the High Council of the Central Bank of Iran, marking a positive step toward emerging from a prolonged slowdown. On 24 August 2026, the council raised the ceilings on loans granted through priority right certificate bonds for purchasing, building, rental deposits and home renovation, with the aim of strengthening both supply and demand and improving household purchasing power. The decision signals the banking system’s commitment to supporting genuine home builders and buyers.

Details of the increased loan ceilings

Under the new resolution, loan ceilings have been revised in three main categories:

Home purchase and construction loans

The amounts available to applicants for purchasing or constructing residential units are now set as follows:

In the Tehran metropolitan area, the individual loan ceiling is 10 billion rials, rising to 20 billion rials for married couples. In provincial capitals and cities with populations above 200,000, the figures are 8 billion and 16 billion rials respectively, while in all other areas they stand at 6 billion and 12 billion rials.

Home renovation loans (ja’aleh)

The ceiling for residential renovation loans has been raised from 2.8 billion rials to 4 billion rials.

Rental deposit loans

The rental deposit loan ceiling has also been increased: in the city of Tehran from 3 billion rials to 4 billion rials; in provincial capitals and cities above 200,000 population from 2.25 billion rials to 3 billion rials; and in other areas from 1.5 billion rials to 2 billion rials.

Market and economic impact

These measures carry positive implications for construction industry stakeholders. Raising loan ceilings strengthens the financial capacity of households to enter the housing market and boosts effective demand. The increase in the construction loan ceiling for married couples in Tehran to 20 billion rials is a meaningful step toward covering part of building costs and easing financial pressure on developers. Furthermore, the higher renovation loan limit creates a serious incentive for the refurbishment and major repair of residential units, which in turn benefits the building materials industry and technical services.

The construction sector, as one of the key drivers of the economy, accounts for a significant share of employment. According to the Deputy for Entrepreneurship Development at the Ministry of Cooperatives, Labour and Social Welfare, the industry represents 13 percent of the country’s labour market. It is anticipated that the 26th Tehran International Building Exhibition, with more than 670 exhibitors and an expected 149,000 visitors, will showcase the sector’s latest achievements.

Alongside these measures, multiple development programmes are underway across the country. In Shiraz, the strategic operational plan for the year 1405 (2026–2027) has been formulated with 45 major projects and over 300 smaller-scale initiatives, encompassing civil works and infrastructure. Meanwhile, in Minab county, 63 development and investment projects are being inaugurated to coincide with Government Week.

Editorial analysis

According to SAMA, the Central Bank’s decision to raise housing loan ceilings can be regarded as one of the most significant support measures in the housing sector in the year 1405. The move is designed to assist genuine housing applicants and revitalise the construction industry, and it has the potential to generate positive momentum in the building market. While this step alone cannot resolve all the structural challenges facing the construction sector, it deserves recognition as an effective measure on the path to financing projects and improving public purchasing power.