Shahr-e Ziba Poised for a Transformation as Tehran Considers Key Rezoning Plan

Shahr-e Ziba, a modest suburb tucked between Azadi Expressway and the foothills of Kan, is on track to become Tehran’s next real estate hotspot after city officials confirmed a long-awaited rezoning proposal will head to municipal council next week.

This move arrives at a moment of acute housing pressure across Tehran. Renewed discussion of land use rules in peripheral districts, along with last month’s dramatic jump in city-center rents—as tracked by the Tehran Board of Real Estate Agencies—have focused investor attention on undervalued areas like Shahr-e Ziba. Over the past eighteen months, high inflation and a surging population have squeezed buyers and renters alike, driving a hunt for affordable but accessible locales.

Between Kan and Azadi: A Suburb Hiding in Plain Sight

Many residents of Tehran simply pass through Shahr-e Ziba along the busy Ashrafi Esfahani Expressway without a second glance. The area is best known for its proximity to Shahid Kazemi Hospital and the sprawling Shahr-e Ziba park, but its residential backstreets have long been overlooked by both developers and speculators. According to planners at Martyrs of Islamic Revolution municipality branch, the suburb’s current zoning—imposed in 1993—strictly limits building heights and apartments-per-plot, freezing much of the area in a low-rise, low-density mold.

The new proposal, detailed in a June 27 memo from District 5 councilors, would allow mixed-use developments up to eight stories high along Shahrara Street and parts of North Kan Road. It would also relax permit requirements for subdivision and the conversion of single-dwelling blocks into three-unit apartment buildings in the formerly protected green corridor bordering Imam Sadegh University’s north campus.

Numbers Point to Early Momentum

After a muted decade, Shahr-e Ziba’s housing market is quietly warming up. Data from Tehran Real Estate Union shows the median per-square-metre sale price in the suburb reached 103 million toman in June, a 16% rise in just five months—though still under the District 5 average of 148 million. Only 38 new multi-unit permits were filed in 2025, but local agency Pars Tabarrok reports at least 22 submissions since April alone, mainly clustered within 600 metres of Asadabadi Metro Station. "Investors are front-running the rezoning possibility," a district planning official said during a recent urban development workshop at Tarbiat Modares University.

An informal survey conducted by The Daily Tehran at local estate agencies last week found that typical one-bedroom leases at the new-for-2021 Fazel residential complex stood at 9.5 million toman monthly—up 7% since Nowruz.

Advice for Buyers and What Comes Next

Would-be homebuyers and investors are being told to watch Municipal Council’s July 8 session closely. If the rezoning passes, city officials say updated planning certificates and detailed building guidelines will be published no later than August 1. The council’s draft memo also includes provisions for improved traffic management at Shahr-e Ziba Square, and funding for redevelopment of the aging Kowsar Market precinct.

Urban planners caution that any rezoning brings both opportunities and risks. Prospective buyers should scrutinise new building permits (most available through the District 5 online portal), consult local consultation bureaus on Shahrara Street, and keep track of legal appeals—which, as recent history in District 22 shows, can delay projects for months. In a crowded Tehran market, Shahr-e Ziba’s moment may finally be here, but the window for first movers could close quickly.