Iran Construction Market Report 2025: Iranian Construction Sector to Average 3.8% Growth From 2025-2028, Supported by Energy Investments

Iran's construction industry faces a 0.6% contraction in 2025, impacted by inflation, war, tariffs, political instability, and Rial devaluation. Despite challenges, growth is expected at 3.8% annually from 2025-2028, driven by investments in infrastructure and energy, including nuclear projects with Russia.


Dublin, Aug. 20, 2025 (GLOBE NEWSWIRE) -- The "Iran Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)" report has been added to ResearchAndMarkets.com's offering.

The construction industry in Iran is expected to see a slight contraction of 0.6% in real terms in 2025, due to headwinds such as high inflation, the ongoing war in the country with Israel and the US, recent tariff implications by the US, political instability, the devaluation of the Iranian Rial against the US Dollar, and a growing energy imbalance.

Over the remainder of the forecast period, between 2025 and 2028, the construction industry is expected to register an annual average growth rate of 3.8%, supported by investments in industrial, transport, housing, and energy sectors, in line with the government's plan to add 30GW of renewable energy generation by 2030. To support this, in June 2025, the government reported that it had signed an agreement for the construction of eight nuclear power plants in the country with Russia. Apart from this, Russia will also help in the construction of two additional reactors at the nuclear plant of Bushehr to push the country's nuclear power generation from 1GW to 3GW, once completed by 2026

The Construction in Iran - Country Briefing 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

Reasons to Buy

  • 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 the analyst's critical and actionable insight
  • Assess business risks, including cost, regulatory and competitive pressures
  • Evaluate competitive risk and success factors

Key Topics Covered:

  • Executive Summary
  • Construction Industry: At-a-Glance
  • Latest news and developments
  • Project analytics
  • Construction Market Data
  • Risk Profile

List of Tables

Table 1: Construction Industry Key Data
Table 2: Iran, Top Construction Projects by Value
Table 3: Iran, Construction Output Value (Real, $ Million)
Table 4: Iran, Construction Output Value (Nominal, IRR Trillion)
Table 5: the analyst Construction Market Definitions
Table 6: Risk Dimensions
Table 7: Ratings, Scores and Definitions

List of Figures

Figure 1: Iran, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2019-28
Figure 2: Iran, Construction Output Value, by Sector (Real, $ Million), 2019-28
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

For more information about this report visit https://www.researchandmarkets.com/r/bf710p

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