Page 16 - Iran OUTLOOK 2025

Iran's broader trade diversification strategy.
However, the agricultural sector faced significant operational challenges, particularly regarding energy supply. Power shortages affected critical infrastructure, including water pumps and fertiliser production facilities, potentially threatening food security. The disruption to natural-gas-dependent fertiliser production posed particular risks to crop yields.
The government's response focused on enhancing sector resilience through various support measures. These included the promotion of hybrid seeds to improve yields and disease resistance, alongside broader policy initiatives aimed at strengthening the sector's capacity to withstand economic and environmental pressures.
• 6.3 Construction and real estate
In 2024, Iran's construction and real estate sectors displayed contrasting patterns of growth and challenges. The construction industry projected growth of 6.1%, reaching IRR 7,161,778bn, driven by increased capital formation and investments across energy, infrastructure, and oil and gas sectors.
The residential real estate market reached an estimated value of $2.68tn in 2024, with forecasts suggesting expansion to $3.11tn by 2029, representing a compound annual growth rate of 3.02%. However, these growth figures mask significant underlying challenges in the housing sector.
The impact of currency devaluation manifested notably in the rental market, where April 2024 saw a 42% y/y increase in rents. This sharp rise in housing costs contributed to mounting affordability concerns across the population, particularly affecting urban areas.
Tehran's architectural landscape reflected broader social and economic transformations. A shift towards modern designs, particularly floor-to-ceiling glass windows in apartments, marked a departure from traditional opaque structures. This architectural evolution aligned with changing social norms, including greater acceptance of single living and a blurring of private-public boundaries.
However, these architectural trends also highlighted growing economic disparities. The proliferation of luxurious glass-fronted apartments stood
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