Legal Authorization to Sell Up to ۴۰% of Mixed-Use Tourism Projects

Ali-Asghar Shalbafian, head of the Investment Center at Iran’s Ministry of Cultural Heritage and Tourism, has highlighted the capacities created under the Seventh Development Plan, announcing that the legislature has granted permission to incorporate office, commercial, and residential uses alongside tourism use. According to him, the non-tourism portion of mixed-use projects can account for up to 40 percent of the total useful floor area, and it is now possible to sell or pre-sell this portion as well as to issue separate title deeds.

In an interview about the opportunities and challenges of investment in the tourism sector, Shalbafian elaborated on the most significant legal capacity created for mixed-use projects, describing it as an opportunity for the private sector.

Legal Authorization for Mixed Uses

According to him, under Articles 8 and 3 of the Seventh Development Plan, the legislature has allowed office, commercial, and residential uses to be placed alongside tourism use. On this basis, the non-tourism portion of the project—which he referred to as the foreign-currency section—can constitute up to 40 percent of the total useful floor area of the mixed-use project.

Shalbafian added: “This portion can be sold or pre-sold, and it is also possible to issue separate title deeds for it, whether for residential or commercial use.”

Removing Administrative Barriers for Foreign Investors

In response to a question about the facilities provided for foreign investors, and noting that one of the main obstacles in this area is administrative barriers, he referred to the promulgation of the Production Financing Law and said: “Over the past two years, under this law, legal permission was granted to create unnamed investment packages.”

According to Shalbafian, a process that previously took about two years and in which permits were obtained on behalf of the prospective investor has now been designed in an integrated and interwoven manner so that the investor can achieve the desired profit with the necessary attractiveness, and the country can also use this framework to complete its infrastructure.

Summary

Shalbafian believes that combining office, commercial, and residential uses with tourism use within the framework of the Seventh Development Plan—along with the possibility of selling or pre-selling the non-tourism share and issuing separate title deeds—increases the attractiveness of investment in this sector. At the same time, facilitating the administrative process through unnamed investment packages can reduce a major obstacle for foreign investors.