Since mid-2019, Iran has seen an increase in the cost of construction, which has caused the construction industry to experience a severe downturn, leaving many people without a roof over their heads.
The country’s poor economic state
Many politicians have questioned the new government’s plan to build one million homes per year as a false promise due to the country’s poor economic state.
However, one piece of housing-related news that has astonished many people is the government’s negotiations with the Chinese to use the country’s construction industry.
Even many of the regime’s officials have expressed their displeasure with it. Eghbal Shakeri, a member of the parliament’s Civil Commission, remarked in an interview:
“The Minister of Roads and Urban Development announced this issue in a recent meeting with the commission members and did not provide details, but it is not exclusive to Chinese companies, and companies with technology from other countries can participate in the construction of Iranian housing under the condition of technology transfer.” ‘Technology transfer is the key prerequisite for agreeing to outsiders’ participation in Iran’s building,’ Shakeri said.
Chinese to use the country’s construction industry
Surprisingly, Iraj Rahbar, Vice President of the Association of Mass Builders of Tehran Province, responded to the question of why the government is not using Iranian building businesses and engineers with the aid of world-advanced technologies:
“Unfortunately, the Minister of Roads and Urban Development lacks sufficient information about domestic construction facilities and capabilities.”
According to some national experts, Iran today has more than 500 thousand engineers, many of them are unemployed, and the government is insisting on using foreign engineers in many sections of the country’s business, generating suspicions of corruption.
The dictatorship used Chinese businesses
The damage is seen in projects like the Tehran-North Freeway, where the dictatorship used Chinese businesses to complete the project, which is still unfinished after 20 years and the businesses have left the country.
Other effects that are negatively affecting the country’s economy are that technologies for this field have been imported from abroad while the country owns the same potential, resulting in an increase in unemployment and forcing many of the producers of these technologies in the field of urban construction to export their products to other countries like Iraq, where they have no customers.
Another unfortunate fact is that, despite the fact that training engineers are an expensive endeavor for any country, Iran has one of the highest rates of brain drain.
This scenario throws even more doubt on President Ebrahim Raisi’s plan to build one million housing units in a year.