Tehran Council’s Planning Shake-Up to Transform Density and Design Rules

Tehran City Council this week approved a set of sweeping amendments to its urban planning code, paving the way for denser, taller construction and stricter design standards in central and uptown neighbourhoods. The new regulations, passed late Wednesday after months of consultation, raise the permitted floor-area ratios (FAR) for residential blocks on streets wider than 12 metres and set stricter design guidelines for new developments, particularly in Shahrak-e Gharb and Fereshteh.

Rising Demand--and Pressure on Infrastructure

The decision lands as Tehran faces its most acute housing crunch in a decade. Soaring rents and a surge in population—officially estimated at 9.1 million in the greater city as of 2026—have fuelled concerns about affordability and congestion. The city’s existing planning code, last substantially revised in 2013, was widely seen as a brake on redevelopment, particularly along boulevards such as Vali Asr and Africa Avenue, where demand for new apartments routinely outpaces approvals.

These planning changes aim to allow more building height on sites already covered by multi-unit permits, and to provide incentives for developers incorporating green roofs, underground parking, and pedestrian-friendly setbacks. On western stretches of Shahrak-e Gharb, some currently maxed at six floors, the new code allows at least two more storeys if specific street-facing design criteria and parking are met. “It’s a direct response to population growth and a critical lack of mid-market housing options,” said one official involved in the urban planning process.

Details: From Shahrak-e Gharb to Fereshteh

In Shahrak-e Gharb, the allowable FAR increases from 2.8 to 3.5 for approved blocks on Kolahdooz and Farhang streets. In Fereshteh, property owners on Golestan and Lavasan streets are now eligible to submit plans for up to eight stories, provided new façades include materials specified in the council’s design palette, such as local travertine and brick. The planning commission also introduced a 15% mandate for every new residential development above 20 units to be designated as “affordable” (with rents indexed to the 2025 city median, approximately 11 million tomans per month for a 90-square-metre apartment, according to data from Tehran Real Estate Board).

Architects from the Tehran Urban Forum, which frequently lobbies for walkability, say the fine-grained setbacks along Osveh Taleb Street in Shahrak-e Gharb are likely to set a precedent for green corridors and rooftop gardens citywide. Meanwhile, the city’s infrastructure team has flagged possible pressure on water and electricity networks if density surges, especially near older conduits off Vali Asr.

Construction analysts estimate the new rules could unlock over 30,000 additional permitted apartments within city limits by 2029. Last year’s council docket shows only 11,400 citywide unit approvals, far short of demand from both Tehranis and newly arrived families from outlying provinces. Without fresh supply, the Tehran Real Estate Board projects a further 9% rise in average rents by next spring, driven by chronic undersupply and tightening mortgage lending from state-owned banks.

For individual homeowners and small-scale investors, navigating these rule changes may require professional advice. The Council’s Urban Guidance Centre on Beheshti Street is now operating from 8am to 8pm daily to help applicants interpret the new zoning code and clarify design obligations, especially those related to mandatory tree cover and locally-sourced materials. Officials say further amendments—possibly covering mixed-use towers and micro-units—could be brought to a council vote as early as September. For now, residents considering renovations or rebuilds on eligible streets should consult updated planning maps issued by Tehran Municipality last night or seek early advice before submitting blueprints.