Tehran Property Prices Climb 13% Over Last Year, Led by North and Central Districts

Property values in Tehran rose 13% in the past quarter compared to the same stretch last year, new figures from the Tehran Board of Realtors show. The average price per square metre citywide reached 154 million toman at the end of June, up from 136 million toman in the second quarter of 2025.

The jump comes as the capital digests political uncertainty in the wake of the Supreme Leader’s funeral, challenging families and investors with both fast-moving prices and a shifting macro climate. Rising inflation and persistent currency volatility have only accelerated the rush among middle-class buyers to secure homes or park savings in brick-and-mortar assets. Real estate agents from Vanak Square to Pasdaran report strong demand, especially for mid-range apartments in secure projects.

Growth Driven by North Tehran and Revitalised East End

The sharpest annual jumps came in established northern districts like Sa’adat Abad, where the price tag for a new, two-bedroom apartment on Iran Zamin Street hit 208 million toman per square metre in late June. That’s a rise of 17% in just twelve months, according to figures from Kian Melk agency. In the east, Narmak’s recent wave of urban renewal—thanks in part to the Municipality-backed Mehr-e-Tehran program—has lifted average unit prices 11%, with renovated flats on Rastakhiz Street now averaging 123 million toman per square metre.

Estate managers point to a confluence of factors behind the sustained gains: persistent housing shortages, especially in popular neighbourhoods; a backlog of postponed projects following delays in 2024; and anticipation around the promised expansion of Tehran Metro Line 10, which is projected to add nine new stations across central, east and north Tehran by early 2027. Local developer Arya Sazeh currently has three mid-rise towers under construction near the future Rezvan station, with over half of the units in pre-sale as of July.

Data Underscore the Trend—But Price Gaps Widen

Tehran’s real estate analytics firm Asaar published its Q2 2026 report this week, confirming the year-on-year average price jump but noting increased divergence between neighbourhoods. Ekbatan, in the west, saw milder growth at 7%, as mortgage lending rules tighten. Meanwhile, commercial rents on Valiasr Avenue jumped by a steep 21% after a post-pandemic recovery in the hospitality sector. The report also found that unit inventory dropped by 19% compared to last spring, intensifying competition among buyers. For first-time purchasers, this has meant hunting for smaller units or shifting their search further from the city core.

Looking ahead, analysts expect modest further growth if the rial holds its recent gains, but warn that buyers should double-check title deeds and ensure all taxes are settled before signing. Municipal offices in Districts 2 and 8 reported longer waiting times for closing paperwork last month, so allow a buffer for bureaucracy.

For residents planning to take advantage of the uptrend, consult the Tehran Board of Realtors’ online database for current inventory, and consider emerging neighbourhoods like Sohanak or Azadi, where price growth lags but infrastructure investment is ongoing. As always, check credentials and let agents know your true budget up front; competition is still fierce, and the best properties only last days, not weeks, during this strong summer market.