Buying property in Iran and Europe has always been an important topic for investors and people looking for long-term residence or investment. The economic, political, cultural and environmental differences between these two regions have caused the housing market in Iran and Europe to have completely different conditions. Examining factors such as inflation, interest rates, government policies, construction quality, architectural styles and access to modern construction technologies helps buyers make a more informed decision to buy property and manage their capital in the best way. In this article, we intend to compare the price of buying property in Iran and Europe. Stay with us.
Comparing property purchase prices in Iran and Europe
Comparing property prices in Iran and Europe reveals significant differences in the housing markets of the two regions. In Iran, especially in Tehran, the average price per square meter of housing is around 830 million rials (approximately $1,400). This rate is much lower compared to many European countries. However, the lower purchasing power of Iranian citizens, high inflation rates, and currency fluctuations have created major challenges for buyers. For example, in 2024, rents in Iran increased by 42% compared to the previous year.
However, in Europe, housing prices average around 4,847 euros (approximately $5,300) per square meter. This average varies from country to country. For example, in Eastern European countries such as Bulgaria, prices have increased significantly, while in Western countries such as France, a price decline is observed. However, compared to Iran, the higher purchasing power of European citizens, economic stability, and access to housing loans with lower interest rates provide better conditions for buyers.
Factors affecting the difference in property purchase prices in Iran and Europe
Leaving aside currency issues, there are several other factors that have led to this difference in the price of buying property in Iran and Europe. Stay with us as we introduce these factors.
Economic situation and inflation
While European countries are experiencing stable economies and low inflation rates, Iran has been facing a deep economic crisis since 2024. International sanctions, declining oil exports, and inefficient economic management have caused inflation in Iran to reach more than 40% and the value of the rial to plummet. These conditions have led to a sharp increase in housing prices and a decrease in people’s purchasing power.
Government policies and investment support
In Europe, governments have created favorable conditions for investors by offering supportive policies such as tax breaks, low-interest loans, and simplified administrative processes. This support has attracted domestic and foreign investors and boosted the housing market. In contrast, in Iran, sanctions, corruption, and legal complexities have hindered the attraction of foreign and domestic investment in the housing sector.
Supply and demand in the housing market
In European countries, systematic urban planning and infrastructure development have balanced supply and demand in the housing market. While in Iran, the shortage of suitable land for construction, increasing urban population, and lack of effective urban planning have led to rising prices and reduced access to housing.
Interest rates and lending terms
In Europe, low interest rates and favorable lending conditions have made it possible for different segments of society to purchase housing. While in Iran, high interest rates, inflation, and currency fluctuations have created difficult conditions for housing applicants.
Political stability and investment security
European countries with their political stability and high investment security have provided a suitable environment for economic activities and investment in the housing sector. In contrast, in Iran, political fluctuations, sanctions, and economic instability have reduced investor confidence and increased risk in the housing market.
Infrastructure and construction quality
In Europe, the use of modern technologies in construction consulting, adherence to high standards, and attention to modern decoration design have increased the quality and durability of buildings. In Iran, despite progress in some projects, construction quality and adherence to standards still face challenges in many areas.
Climate impacts and natural resources
In Europe, attention to environmental issues and the optimal use of natural resources in construction has reduced energy costs and increased the attractiveness of the housing market. In Iran, environmental crises such as water shortages and climate change have had negative effects on the housing market and brought additional costs.
Construction costs and wages
In Europe, construction costs are higher due to advanced technologies and skilled labor, but these costs are offset by high construction quality and greater durability. In Iran, construction costs are lower due to the use of lower quality materials and lower wages, but this may negatively affect the final quality of the project.
Access to financial resources and investment
In European countries, advanced financial markets and easy access to finance have facilitated the financing of housing projects. In Iran, due to sanctions and banking restrictions, access to foreign finance is limited, and this has had a negative impact on the development of housing projects.
Is it better to buy property in Iran or Europe?
Deciding whether to buy property in Iran or Europe requires careful consideration of economic, political, social, and housing market factors. In Iran, despite lower property prices than in many European countries, severe currency fluctuations, high inflation, and political and economic risks make buying property risky for investors. On the other hand, Europe, with its economic stability, low interest rates, and favorable lending facilities, has a more stable and predictable housing market that provides greater investment security. Also, the diversity of European architectural styles, high quality construction, and access to modern construction technologies make it more attractive to buyers. However, the higher costs of buying and maintaining property in Europe should also be considered.
Final Words
As you can see, in this article, we have compared the prices of buying property in Iran and Europe. We have learned that the decision to buy property in Iran or Europe depends on a set of economic, political, and social factors. Iran is attractive to some buyers with its lower prices and short-term opportunities, but economic fluctuations and high market risks can be challenging. Europe, with its stable housing market, advanced facilities and technologies, and higher investment security, is a suitable option for long-term investment and quality living. Finally, do not forget that professional construction advice and a careful examination of market conditions are the keys to success in choosing the best option for buying property. Thank you for your support.
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