Iran’s construction industry is expected to decline by 18.4% in real terms in 2026, due to the detrimental effect of a prolonged conflict with the US and Israel, increasing labor shortages, rising construction material costs, elevated inflation rates, and a weaker industrial market. With the advent of the conflict of Iran with the US and Israel from February 28th 2026, onwards, the construction activities in Iran are facing a sharp blow caused by heightened tension in the Persian Gulf.
Over the remainder of the forecast period, Iranian construction industry is however expected to recover from 2027 onwards by recording an annual average growth rate of 5.7% from 2027 to 2030, supported by investments in the manufacturing, transport infrastructure, housing, and energy sectors. In November 2025, Iran’s Foreign Investment Board approved 67 projects worth IRR65.4 trillion ($485 million). This encompasses a broad range of industries including manufacturing, automotive, pharmaceuticals, healthcare, mining, refinery construction, renewable energy, transportation, and services.
Over the remainder of the forecast period, Iranian construction industry is however expected to recover from 2027 onwards by recording an annual average growth rate of 5.7% from 2027 to 2030, supported by investments in the manufacturing, transport infrastructure, housing, and energy sectors. In November 2025, Iran’s Foreign Investment Board approved 67 projects worth IRR65.4 trillion ($485 million). This encompasses a broad range of industries including manufacturing, automotive, pharmaceuticals, healthcare, mining, refinery construction, renewable energy, transportation, and services.
The Construction in Iran - Country Briefing (H1 2026) 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.
Scope
This report provides a comprehensive analysis of the construction industry in Iran. It provides:
- Historical (2021-2025) and forecast (2026-2030) 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
