Iran’s Housing Market Shifts from Price Competition to Project-Centric Rivalry

According to SAMA, Mostafa Rabiei, a construction branding consultant, drawing on his continuous engagement with both developers and homebuyers, challenges the prevailing narrative of economic unviability, the end of construction, or market stagnation. He argues that this period is exceptionally favorable for developers who accurately identify consumer needs.

Emphasizing that not just anyone can build a simple four-wall unit and sell it merely because there is a need for shelter, he stated: “People no longer just need a residential unit; they want a developer to build their lifestyle.” In the past, he noted, less attention was paid to modernity, amenities, technology, and applications, but now all these aspects must be reconsidered.

Old Construction Formulas No Longer Work

Rabiei pointed out that outdated construction formulas are no longer effective. In the past, location or square footage might have been the primary factors, but now, in areas where quality construction was previously absent, distinctive buildings are being erected that capture buyers’ attention.

He added that developers who correctly understand their audience’s needs not only achieve strong sales but also command the market and advance their projects successfully. “Through our work in this field, we hear the voices of both developers and consumers, and that is an interesting dynamic,” he remarked.

Rabiei clarified: “To be honest, the market is no longer about price competition; it is about competition in project delivery. While price can be one indicator, I truly appreciate this market.”

Non-Professional Developers Are Being Eliminated

He predicted that many who are not professional, cannot gauge the market, and do not operate professionally in construction have already been largely removed, and will continue to be phased out. According to him, the number of developers will decrease, but more compelling projects will be designed.

The construction branding consultant, referring to projects currently being defined, expressed hope that these will come to fruition. He also touched on the concept of “hoteling” (hospitality-oriented residential services), which he said has gained significant attention and whose operational aspects should gradually be examined, as it will present challenges ahead.