Iran Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)
Description
Iran Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)
Summary
Iran’s construction industry is expected to have grown by 2% in real terms in 2025, and record an annual average growth rate of 3.9%, from 2026 to 2029, supported by investments in the energy, infrastructure, and oil and gas sectors. Growth will also be supported by rising foreign direct investment in Iran’s free trade and special economic zones. According to the Secretariat of Iran’s Free Zones High Council, Iran’s free trade and special economic zones attracted approximately IRR260.6 trillion ($461 million) during the first eight months of the current Iranian year (March 20, 2025-November 21, 2025), marking an increase of 695% compared with the same period of last year. In another positive development, in November 2025, Iran’s Foreign Investment Board approved 67 applications worth IRR274.1 trillion ($485 million) out of 73 proposals reviewed during its ninth meeting of the year. The approved projects belong to industries such as manufacturing, refinery construction, renewable energy, automotive, mining, pharmaceuticals, healthcare, transportation, and services.
The industry’s growth over the forecast period will also be supported by investments in the industrial, transport, housing, and energy sectors, coupled with the government’s aim to increase renewable energy capacity to 10GW by 2030 -up from 3.2GW as of November 2025. In line with this, in September 2025, the government announced a plan to construct eight nuclear power plants aiming to reach 20GW of nuclear energy capacity by 2040. In the same month, the Russian state nuclear corporation Rosatom reported that the Russian government and the Iranian government signed a memorandum of understanding (MoU) on the construction of small nuclear power plants in Iran. Furthermore, in September 2025, Iran signed an economic agreement with China, under which Beijing will supply solar panels with a total capacity of 7GW to address the electricity shortage crisis. The panels are scheduled to be installed by 2026. Moreover, in a major development, in April 2025, the government stated that it will provide IRR2.8 quadrillion ($5 billion), over the next four years, as loans through the National Sovereign Wealth Fund for the construction of photovoltaic power plants (PV), domestically. Growth over the forecasted period will also be supported by the National Development Plan (2022-2027), which aims to boost the country’s petrochemical production capacity to 131 million tons by 2027, compared to 100 million tons in 2024. Under the seventh National Development Plan, 68 projects will be implemented with a total investment of IRR19.3 trillion ($35 billion), to boost the petrochemical capacity in the country by 2027.
GlobalData’s Construction in Iran - Country Briefing (H2 2025) report provides detailed market analysis, information, and insights into Iran's construction industry, including:
This report provides a comprehensive analysis of the construction industry in Iran. It provides -
Summary
Iran’s construction industry is expected to have grown by 2% in real terms in 2025, and record an annual average growth rate of 3.9%, from 2026 to 2029, supported by investments in the energy, infrastructure, and oil and gas sectors. Growth will also be supported by rising foreign direct investment in Iran’s free trade and special economic zones. According to the Secretariat of Iran’s Free Zones High Council, Iran’s free trade and special economic zones attracted approximately IRR260.6 trillion ($461 million) during the first eight months of the current Iranian year (March 20, 2025-November 21, 2025), marking an increase of 695% compared with the same period of last year. In another positive development, in November 2025, Iran’s Foreign Investment Board approved 67 applications worth IRR274.1 trillion ($485 million) out of 73 proposals reviewed during its ninth meeting of the year. The approved projects belong to industries such as manufacturing, refinery construction, renewable energy, automotive, mining, pharmaceuticals, healthcare, transportation, and services.
The industry’s growth over the forecast period will also be supported by investments in the industrial, transport, housing, and energy sectors, coupled with the government’s aim to increase renewable energy capacity to 10GW by 2030 -up from 3.2GW as of November 2025. In line with this, in September 2025, the government announced a plan to construct eight nuclear power plants aiming to reach 20GW of nuclear energy capacity by 2040. In the same month, the Russian state nuclear corporation Rosatom reported that the Russian government and the Iranian government signed a memorandum of understanding (MoU) on the construction of small nuclear power plants in Iran. Furthermore, in September 2025, Iran signed an economic agreement with China, under which Beijing will supply solar panels with a total capacity of 7GW to address the electricity shortage crisis. The panels are scheduled to be installed by 2026. Moreover, in a major development, in April 2025, the government stated that it will provide IRR2.8 quadrillion ($5 billion), over the next four years, as loans through the National Sovereign Wealth Fund for the construction of photovoltaic power plants (PV), domestically. Growth over the forecasted period will also be supported by the National Development Plan (2022-2027), which aims to boost the country’s petrochemical production capacity to 131 million tons by 2027, compared to 100 million tons in 2024. Under the seventh National Development Plan, 68 projects will be implemented with a total investment of IRR19.3 trillion ($35 billion), to boost the petrochemical capacity in the country by 2027.
GlobalData’s Construction in Iran - Country Briefing (H2 2025) report provides detailed market analysis, information, and insights into Iran's construction industry, including:
- Iran's construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Iran's construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
This report provides a comprehensive analysis of the construction industry in Iran. It provides -
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Iran, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using GlobalData's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
20 Pages
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Latest news and developments
- 4 Project analytics
- 5 Construction Market Data
- 6 Risk Profile
- 7 Appendix
- 7.1 Definitions
- 7.2 CRI Methodology
- 7.3 About GlobalData
- 8 Contact Us
- List of Figures
- Figure 1: Iran, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020–29
- Figure 2: Iran, Construction Output Value, by Sector (Real, $ Million), 2020–29
- Figure 3: Middle East and North Africa, Construction Output (Real % Change), 2023–29
- Figure 4: Iran, Construction Output by Sector (Real % Change), 2023–25 and 2026–29
- Figure 5: Iran, Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 6: Iran, Risk Summary
- Figure 7: Iran, Risk Regional Comparison
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