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Construction in Iran – Key Trends and Opportunities to 2021

Construction in Iran – Key Trends and Opportunities to 2021

Synopsis

In real terms, the Iranian construction industry’s output declined by 14.9% in 2016, measured at constant 2010 US dollar exchange rates. This was preceded by an annual decline of 16.1% in 2015, 13.0% in 2014, and 10.4% in 2013. This decline can be attributed to the fall in crude oil prices and slowdown of the economy over the period. Moreover, high unemployment, inflation and low domestic production during the review period (2012–2016) contributed to this decline.

The industry is expected to recover over the forecast period (2017–2021), backed by the removal of international sanctions and a rise in oil production and exports. In 2015, Iran and the P5+1 countries – the US, China, France, Russia, the UK and Germany – signed the Joint Comprehensive Plan of Action (JCPOA). Under this plan, the P5+1 countries placed restrictions on Iranian nuclear activities, and in return agreed to establish normal trade activity and economic relations with Iran.

Moreover, a rise in building permits for the construction of residential and non-residential buildings in the country is expected to support the industry’s growth over the forecast period. Total construction permits issued in urban areas increased by 12.1% in FY2016–2017, going from 101,500 units in FY2015–2016 to 113,800 units in FY2016–2017.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 2.0% over the forecast period; compared with -13.7% during the review period.

Summary

Timetric’s Construction in Iran – Key Trends and Opportunities to 2021 report provides detailed market analysis, information and insights into the Iranian construction industry, including:

  • The Iranian construction industry's growth prospects by market, project type and construction activity;
  • Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Iranian construction industry;
  • Profiles of the leading operators in the Iranian construction industry.
Scope

This report provides a comprehensive analysis of the construction industry in Iran. It provides:
  • Historical (2012-2016) and forecast (2017-2021) valuations of the construction industry in Iran using construction output and value-add methods
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
  • Detailed profiles of the leading construction companies in Iran
Reasons To Buy
  • Identify and evaluate market opportunities using Timetric's 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 strategy using Timetric's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.
Key Highlights
  • Timetric expects the infrastructure construction market to grow at a forecast-period CAGR of 15.95% in nominal terms, driven by government’s investment in transport infrastructure. In June 2017, under the sixth Five-year Development Plan (2017–2021), the government announced plans to develop six dry ports in Mashhad, Tabriz, south-eastern Sistan-Baluchestan province and the Aprin train station by 2022. For this, the government plans to invest IRR3.0–7.0 trillion (US$80–190.0 million) with the help of private investors.
  • The Swiss government signed a IRR25.0 million (US$772.9 billion) contract with the Islamic Republic of Iran Railways to develop related infrastructure for dry ports in June 2017. Additionally, the government is planning to invest IRR228.6 trillion (US$8.0 billion) to construct new terminal spaces at 27 airports by 2025.
  • In order to provide a fast and reliable transport system to its citizens, in 2016, the government announced plan to invest IRR43.3 trillion (US$1.4 billion) to develop metro rail infrastructure, with an aim to run 4,000 metro trains by 2025.
  • Timetric expects that the government’s plan to increase oil production capacity is expected to spur the growth of energy and utility construction market over the forecast period. The government plans to increase oil production capacity from 3.7–3.9 million barrels per day in 2016 to 4.7–4.8 million barrels per day by 2022, with an aim to boost exports by 500,000 barrels per day by 2021. Consequently, in July 2017, the government signed a deal worth IRR162.0 trillion (US$5.0 billion) with France’s oil company, Total SA, and China’s state-run company, China National Petroleum Corporation (CNPC), in order to develop the South Pars offshore field.
  • Under Iran’s sixth Five-year Development Plan 2017–2021, the government aims to improve the depleted medical infrastructure of the country. Under this plan, it aims to develop at least 2.6 hospital beds for each 1,000 residents in the country. Consequently, with an investment of IRR463.7 trillion (US$15.0 billion), the government plans to construct 20 mega general hospitals across the country by 2020.


  • Executive Summary
  • Industry Outlook
    • Commercial Construction
    • Industrial Construction
    • Infrastructure Construction
    • Energy and Utilities Construction
    • Institutional Construction
    • Residential Construction
  • Key Issues and Developments
  • Market Data Analysis
    • Construction Output and Value Add
      • Construction output by project type
        • Table Iranian Construction Output by Project Type (IRR Billion), 2012-2016
        • Table Iranian Construction Output by Project Type (IRR Billion), 2016-2021
      • Construction output by cost type
        • Table Iranian Construction Output by Cost Type (IRR Billion), 2012-2016
        • Table Iranian Construction Output by Cost Type (IRR Billion), 2016-2021
      • Construction output by activity type
        • Table Iranian Construction Output by Activity Type (IRR Billion), 2012-2016
        • Table Iranian Construction Output by Activity Type (IRR Billion), 2016-2021
      • Construction value add by project type
        • Table Iranian Construction Value Add by Project Type (IRR Billion), 2012-2016
        • Table Iranian Construction Value Add by Project Type (IRR Billion), 2016-2021
    • Commercial Construction
      • Commercial construction output by project type
        • Table Iranian Commercial Construction Output by Project Type (IRR Billion), 2012-2016
        • Table Iranian Commercial Construction Output by Project Type (IRR Billion), 2016-2021
      • Commercial construction output by cost type
        • Table Iranian Commercial Construction Output by Cost Type (IRR Billion), 2012-2016
        • Table Iranian Commercial Construction Output by Cost Type (IRR Billion), 2016-2021
      • Commercial construction output by activity type
        • Table Iranian Commercial Construction Output by Activity Type (IRR Billion), 2012-2016
        • Table Iranian Commercial Construction Output by Activity Type (IRR Billion), 2016-2021
      • Commercial construction value add by project type
        • Table Iranian Commercial Construction Value Add by Project Type (IRR Billion), 2012- 2016
        • Table Iranian Commercial Construction Value Add by Project Type (IRR Billion), 2016-2021
    • Industrial Construction
      • Industrial construction output by project type
        • Table Iranian Industrial Construction Output by Project Type (IRR Billion), 2012-2016
        • Table Iranian Industrial Construction Output by Project Type (IRR Billion), 2016-2021
      • Industrial construction output by cost type
        • Table Iranian Industrial Construction Output by Cost Type (IRR Billion), 2012-2016
        • Table Iranian Industrial Construction Output by Cost Type (IRR Billion), 2016-2021
      • Industrial construction output by activity type
        • Table Iranian Industrial Construction Output by Activity Type (IRR Billion), 2012-2016
        • Table Iranian Industrial Construction Output by Activity Type (IRR Billion), 2016-2021
      • Industrial construction value add by project type
        • Table Iranian Industrial Construction Value Add by Project Type (IRR Billion), 2012-2016
        • Table Iranian Industrial Construction Value Add by Project Type (IRR Billion), 2016-2021
    • Infrastructure Construction
      • Infrastructure construction output by project type
        • Table Iranian Infrastructure Construction Output by Project Type (IRR Billion), 2012-2016
        • Table Iranian Infrastructure Construction Output by Project Type (IRR Billion), 2016-2021
      • Infrastructure construction output by cost type
        • Table Iranian Infrastructure Construction Output by Cost Type (IRR Billion), 2012-2016
        • Table Iranian Infrastructure Construction Output by Cost Type (IRR Billion), 2016-2021
      • Infrastructure construction output by activity type
        • Table Iranian Infrastructure Construction Output by Activity Type (IRR Billion), 2012-2016
        • Table Iranian Infrastructure Construction Output by Activity Type (IRR Billion), 2016-2021
      • Infrastructure construction value add by project type
        • Table Iranian Infrastructure Construction Value Add by Project Type (IRR Billion), 2012-2016
        • Table Iranian Infrastructure Construction Value Add by Project Type (IRR Billion), 2016-2021
    • Energy and Utilities Construction
      • Energy and utilities construction output by project type
        • Table Iranian Energy and Utilities Construction Output by Project Type (IRR Billion), 2012-2016
        • Table Iranian Energy and Utilities Construction Output by Project Type (IRR Billion), 2016-2021
      • Energy and utilities construction output by cost type
        • Table Iranian Energy and Utilities Construction Output by Cost Type (IRR Billion), 2012-2016
        • Table Iranian Energy and Utilities Construction Output by Cost Type (IRR Billion), 2016-2021
      • Energy and utilities construction output by activity type
        • Table Iranian Energy and Utilities Construction Output by Activity Type (IRR Billion), 2012-2016
        • Table Iranian Energy and Utilities Construction Output by Activity Type (IRR Billion), 2016-2021
      • Energy and utilities construction value add by project type
        • Table Iranian Energy and Utilities Construction Value Add by Project Type (IRR Billion), 2012-2016
        • Table Iranian Energy and Utilities Construction Value Add by Project Type (IRR Billion), 2016-2021
    • Institutional Construction
      • Institutional construction output by project type
        • Table Iranian Institutional Construction Output by Project Type (IRR Billion), 2012-2016
        • Table Iranian Institutional Construction Output by Project Type (IRR Billion), 2016-2021
      • Institutional construction output by cost type
        • Table Iranian Institutional Construction Output by Cost Type (IRR Billion), 2012-2016
        • Table Iranian Institutional Construction Output by Cost Type (IRR Billion), 2016-2021
      • Institutional construction output by activity type
        • Table Iranian Institutional Construction Output by Activity Type (IRR Billion), 2012-2016
        • Table Iranian Institutional Construction Output by Activity Type (IRR Billion), 2016-2021
      • Institutional construction value add by project type
        • Table Iranian Institutional Construction Value Add by Project Type (IRR Billion), 2012-2016
        • Table Iranian Institutional Construction Value Add by Project Type (IRR Billion), 2016- 2021
    • Residential Construction
      • Residential construction output by project type
        • Table Iranian Residential Construction Output by Project Type (IRR Billion), 2012-2016
        • Table Iranian Residential Construction Output by Project Type (IRR Billion), 2016-2021
      • Residential construction output by cost type
        • Table Iranian Residential Construction Output by Cost Type (IRR Billion), 2012-2016
        • Table Iranian Residential Construction Output by Cost Type (IRR Billion), 2016-2021
      • Residential construction output by activity type
        • Table Iranian Residential Construction Output by Activity Type (IRR Billion), 2012-2016
        • Table Iranian Residential Construction Output by Activity Type (IRR Billion), 2016-2021
      • Residential construction value add by project type
        • Table Iranian Residential Construction Value Add by Project Type (IRR Billion), 2012-2016
        • Table Iranian Residential Construction Value Add by Project Type (IRR Billion), 2016-2021
  • Company Profile: Kayson Inc.
    • Kayson Inc. - Company Overview
      • Table Kayson Inc., Key Facts
    • Kayson Inc. - Business Description
    • Kayson Inc. - Main Services
      • Table Kayson Inc., Main Services
    • Kayson Inc. - History
      • Table Kayson Inc., History
    • Kayson Inc. - Company Information
      • Kayson Inc. - key competitors
      • Kayson Inc. - key employees
        • Table Kayson Inc., Key Employees
  • Company Profile: Negin Mokran Development Company
    • Negin Mokran Development Company - Company Overview
      • Table Negin Mokran Development Company, Key Facts
    • Negin Mokran Development Company - Main Services
      • Table Negin Mokran Development Company, Main Services
    • Negin Mokran Development Company - Company Information
      • Negin Mokran Development Company - key competitors
      • Negin Mokran Development Company - key employee
        • Table Negin Mokran Development Company, Key Employee
  • Company Profile: Moshanir Company
    • Moshanir Company - Company Overview
      • Table Moshanir Company, Key Facts
    • Moshanir Company - Main Services
      • Table Moshanir Company, Main Services
    • Moshanir Company - History
      • Table Moshanir Company, History
    • Moshanir Company - Company Information
      • Moshanir Company - key competitors
      • Moshanir Company - key employees
        • Table Moshanir Company, Key Employees
  • Company Profile: Iranian Offshore Engineering and Construction Company
    • Iranian Offshore Engineering and Construction Company - Company Overview
      • Table Iranian Offshore Engineering and Construction Company, Key Facts
    • Iranian Offshore Engineering and Construction Company - Main Products and Services
      • Table Iranian Offshore Engineering and Construction Company, Main Products and Services
    • Iranian Offshore Engineering and Construction Company - History
      • Table Iranian Offshore Engineering and Construction Company, History
    • Iranian Offshore Engineering and Construction Company - Company Information
      • Iranian Offshore Engineering and Construction Company - key competitors
      • Iranian Offshore Engineering and Construction Company - key employee
        • Table Iranian Offshore Engineering and Construction Company, Key Employee
  • Company Profile: Iran Arvin
    • Iran Arvin - Company Overview
      • Table Iran Arvin, Key Facts
    • Iran Arvin - Main Services
      • Table Iran Arvin, Main Services
    • Iran Arvin - History
      • Table Iran Arvin, History
    • Iran Arvin - Company Information
      • Iran Arvin - key competitors
      • Iran Arvin - key employee
        • Table Iran Arvin, Key Employee
  • Appendix
    • What is this Report About?
    • Definitions
      • Table Timetric Construction Market Definitions
    • Methodology
    • Contact Timetric
    • About Timetric
    • Timetric's Services
    • Disclaimer

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