Iranian MP says the 850 million toman housing loan falls short and should rise to 1.5 billion

Habib Ghasemi, a member of parliament's construction commission and of the presiding board of its Article 90 commission, told the Khane Mellat news agency, in remarks republished by EcoIran on Sunday, 2 August 2026 (11 Mordad 1405), that raising the National Housing Movement loan ceiling from 650 to 850 million tomans does not meet the needs of lower income deciles given inflation and construction costs.

He recalled that when the Housing Production Leap Law was passed the initial loan figure was set at 500 million tomans, at a time when the average build cost per square metre was under 10 million tomans. Ghasemi said the average build cost per square metre, excluding land, is now estimated at more than 25 to 30 million tomans, and that to preserve the same ratio the loan would have to be about 1.5 to 2 billion tomans. He added that applicants cannot cover the gap on a 100 square metre unit priced at roughly 2.5 to 3 billion tomans.

Ghasemi also said 135,000 Mehr Housing units remain outstanding from previous governments, and that of the roughly 850,000 units registered under the Housing Production Leap Law, fewer than 10 percent have been delivered. He proposed either halting the scheme or raising the loan to 1.5 billion tomans, with banks not requiring applicants to fund their full share. The 850 million toman ceiling was approved by the High Council of the Central Bank of Iran at its 71st meeting.