Tehran Greenlights Major Mixed-Use Project Across from Valiasr Square

Tehran’s City Council has given the final go-ahead to a landmark mixed-use development just steps from Valiasr Square, in a move expected to redraw the city centre’s urban profile and accelerate ongoing regeneration efforts. Approval was confirmed at 9:30 p.m. Wednesday after months of debate, clearing the way for a 22-storey complex at the intersection of Jomhouri Avenue and Miremad Street — an address sandwiched between the academic energy of University of Tehran and the commercial rush of Ferdowsi Square.

Why City Centre Redevelopment Matters Now

The push for high-density, transit-oriented projects near Tehran’s core is picking up speed amid a confluence of population pressures and shifting work patterns. With official figures showing a 14% rise in central district rental prices year-on-year—averaging 185 million toman per sqm on key corridors like Enghelab Street—the shortage of mixed-use and mid-market housing near metro lines has become a flashpoint in city politics. Council planners, under pressure from business lobbies and the municipality’s own Regeneration Office, have described the new project as emblematic of the next wave of city centre renewal.

Much of the city’s commercial heart remains locked in ageing office blocks and small-scale retail units, particularly along Jomhouri, where decades-old structures compete with pop-up electronics shops and street vendors. Tehran Urban Studies Institute (TUSI) estimates that nearly 42% of commercial floorspace within three blocks of Valiasr Square is considered “obsolete” under new city guidelines. The newly approved development, backed by Omran City Holdings, is set to integrate 320 residential apartments, three floors of flexible office space and a 7,000sqm commercial arcade into the site currently occupied by two decaying post-revolution era car parks.

Jomhouri Avenue: A Street in Transition

The future building—provisionally named Varzaneh Tower—will rise adjacent to the old Cinema Radio City and face the sprawling student precinct that stretches toward Daneshjoo Park. Developers have agreed to dedicate a portion of ground level retail to local vendors, partly addressing sharp criticism by the Greater Tehran Chamber of Commerce, which warned that major chains could otherwise crowd out existing independent businesses. Planning documents filed at District 11’s municipal office show a 1,200sqm roof garden, designed by architecture firm Bam-e-Sabz, aimed at improving local air quality along the notoriously congested thoroughfare.

Bank Saderat Iran is reported to be providing primary finance, with the first phase of construction scheduled for early December 2026. According to city records, valuation for the site is over 9.8 trillion toman, bolstered by its central location and direct access to both Valiasr Metro and cross-bus lines. Market analysts from Hamshahri Real Estate cite similar high-rise approvals in Abbas Abad and Yousef Abad as precedent for likely strong pre-sale demand, especially if developers follow through on promised mid-size, two-bedroom options—a rarity near the CBD, where studio and luxury formats have dominated new supply since 2022.

Data from Tehran Property Observatory shows that in Q1 2026, only 16% of new CBD completions fell in the sub-100 million toman range per sqm, while housing demand in the area grew almost twice as fast as available stock.

The city council’s final approval includes stringent requirements for earthquake resilience, given the location’s proximity to historic districts and crowded roadways. Demolition is slated to begin in September, with project managers promising minimal disruption to Jomhouri Avenue’s famously dense traffic through staggered work hours and temporary footpath rerouting.

Prospective residents and investors can expect sales office details and floor plans to be released online by late August, according to Omran City Holdings. The municipality’s Urban Development hotline (137) will field queries about construction timelines, traffic management, and business relocation support as the project gets underway. While completion is targeted for 2029, locals are bracing for years of dust, noise, and detours—while city leaders pitch Varzaneh Tower as a once-in-a-generation reset for the heart of Tehran.