Iran's Construction Materials Market
July 15, 2017
This report reviews both the housing market and the building materials’ market and analyzes in detail almost all main building materials used for constructing a building. To make it convenient for readers, we have divided the report into two parts: building materials and interior finishes and fittings. The building materials include: 1- Cement, 2- Plaster, 3- Ceramic tiles, 4- Bricks, 5- Lime, 6- Glass, 7- Sand, 8- Bitumen, 9- Other materials such as [piping and plumbing] fittings (pipes, hoses, fittings, etc.), 10- Building stones, and 11- Building paint.
After introducing each product, the report reviews its market size, exports, imports, domestic production, target markets for exports and imports, market outlook, current prices, strengths, weaknesses, opportunities, threats, and other issues related to that product.
Housing is one of the essential needs of citizens in every country. People view it as a basic need of their own. Without a doubt, people need a roof over their head before starting a family, and housing is one of the most basic needs of young couples.
Over the past five years, construction in the housing sector has run into numerous problems in Iran. The government is trying to work out solutions to these problems, but the fact that the housing market is in a slump is evident. Sales figures are very weak, but they are a bit different when it comes to renting. An analysis of the housing market – which comes below – will provide an overview of what the housing market went through in Iran over the past five years.
The passivity which has gripped the construction sector together with a drop in the number of permits issued for construction over the past few years has pushed the industries reliant on the construction sector and the building materials’ market into the doldrums. This comes as a deputy industries minister too has admitted that as many as 50 industries related to the construction sector are in the grip of stagnation. A look at the sales of building materials such as cement, plaster, iron, and sanitary ware in the market is indicative of a slump which has stemmed from sluggish demand.
As it was already mentioned, the housing and building materials’ markets are paralyzed by stagnation. Most people who seek to buy building materials want to renovate or reconstruct their houses. However, things are different when it comes to the export of building materials. In light of the developments in the Middle East and the fact that several countries in Iran’s backyard are war-stricken, the building material industry is experiencing a boom period.
What one needs to keep in mind about the building materials’ market in Iran is that its prospects will be – without a doubt – bright and promising in the next two years. The country can count on exporting building materials to all regional countries.
Table of Contents
1 Notes 5
2 Executive Summary 6
3 Introduction 6
4 A Review of Housing Market 6
4.1 Housing Supply 6
4.1.1 Construction permits in Tehran and other cities 6
4.1.2 Number of completed residential units in Tehran and other cities 7
4.2 Investment in Construction Sector 7
4.2.1 A review of private investment in new buildings in cities according to construction stages and geographical distribution 7
4.2.2 Review of private sector’s investment in new buildings in urban areas based on residential, nonresidential and residential-nonresidential buildings 8
4.3 Features of Newly Started and Completed Residential Buildings 8
4.3.1 Newly started buildings 8
4.3.2 Completed buildings 8
4.3.3 Distribution of completed buildings based on number of residential units and their average gross floor area 9
4.3.4 Distribution of completed residential units in urban areas based on gross floor area 9
4.3.5 Distribution of completed buildings constructed by the private sector in urban areas based on the type of the buildings: residential, nonresidential, residential-nonresidential 9
4.3.6 Gross floor area of completed buildings in urban areas constructed by the private sector 10
4.3.7 Review of building materials prices and construction workers’ wages 10
4.4 Housing Prices and Rents 10
5 Building Materials Market 11
5.1 Exports of Building Materials 11
5.1.1 Reasons behind shrinking exports of building materials 12
6 Cement 12
6.1 History of Cement in Iran 12
6.2 Worldwide Cement Production 13
6.3 Iran’s Cement Production and Exports 13
6.3.1 Iran’s rivals in cement exports 13
6.4 Statistics on Cement Industry in Iran4 13
6.5 Cement Prices in Iran 14
6.6 Cement Industry Status and Developments in Iran 15
6.6.1 Economic conditions of the past two years 16
6.6.2 Iran’s target markets for cement exports 17
6.6.3 Cement industry; status quo and target setting (production and exports) 17
6.6.4 General objectives of cement industry 17
6.7 A Look at SWOT Analysis of Iran’s Cement Market6 17
7 Tiles and Ceramics7 18
7.1 Tiles and Ceramics Exports 18
7.2 Iran’s Rivals 18
7.3 Weaknesses of Iran’s Tile and Ceramic Market9 20
7.4 Opportunities in Tile and Ceramic Market 21
7.5 Strengths of Tile and Ceramic Market11 22
7.6 A Look at SWOT Analysis of Iran’s Tile and Ceramic Market 22
8 Bricks 22
8.1 Brick Prices 23
8.2 Exports and Imports of Bricks 23
8.3 Permits and Risks 27
9 Gypsum and Plaster 27
9.1 Gypsum Production in Iran and in the World 27
9.2 Plaster Prices 28
9.3 Plaster Exports 29
9.4 Target Markets for Plaster Exports 29
9.4.1 Exports of masonry plaster and others 30
9.5 A Look at SWOT Analysis of Iran’s Plaster Market 31
10 Lime 31
10.1 Lime Production 31
10.1.1 Iran’s limestone production since 2003 31
10.2 Lime Exports 32
10.2.1 Target markets for lime exports 33
10.3 Limestone and Lime Imports 35
10.4 A Look at SWOT Analysis of Iran’s Lime Market 36
11 Glass 36
11.1 Glass Industry in Iran 36
11.2 Glass Market in Iran 36
11.3 Glass Industry Exports 36
11.3.1 Target markets for glass exports 37
11.4 Glass Industry Imports 38
12 Bitumen 40
12.1 Bitumen Production in Iran 40
12.2 Bitumen Prices 41
12.3 Bitumen Exports and Iran’s Target Markets 41
12.3.1 Three main importers of Iran’s bitumen 42
12.4 Challenges and Risks of Iran’s Bitumen Industry 43
12.5 A Look at SWOT Analysis of Iran’s Bitumen Market 43
13 Sand 44
13.1 Sand Production in Iran 44
13.2 Exports and Target Markets 45
13.3 Imports of Sand 46
13.4 A Look at SWOT Analysis of Iran’s Sand Market 47
14 Building Stones 47
14.1 Domestic Production 47
14.2 Building Stone Market in Iran 48
14.3 Building Stone Exports and Iran’s Target Markets 48
14.3.1 Exports of building stones 48
14.4 Imports of Building Stones 52
14.5 Challenges of Building Stone Industry 55
14.6 A Look at SWOT Analysis of Iran’s Building Stone Market 56
15 Architectural Paint 56
15.1 Paint Market 56
15.2 Paint Market and Domestic Manufacturers in Iran 57
15.2.1 Black market of paints 57
15.3 Paint Exports and Target Markets 57
15.4 Paint Imports and Target Markets 57
15.5 Paint Prices 58
16 Building Installations 58
17 Pipes and Hoses 58
17.1 Export Market of Pipes and Hoses 58
17.2 Iran’s Import Market of Pipes and Hoses 59
17.3 Plumbing Fittings 60
17.3.1 Export market of plumbing fittings 60
17.3.2 Import market of plumbing fittings 62
18 Fittings 63
18.1 Fittings Market in Iran 63
18.1.1 Direct correlation between fittings and construction 63
18.1.2 Number of businesses who trade in fittings in Iran 63
18.1.3 Imports of and smuggling in fittings 64
18.1.4 Startup capital for a fittings business 64
18.1.5 License and risks 64
18.2 Exports of Fittings 64
18.3 Imports of Fittings 64
19 Wallpapers 66
19.1 Wallpaper Market in Iran 66
19.1.1 Market review 66
19.1.2 Needed investment 66
19.2 Exports of Wallpapers and Target Markets 67
19.3 Imports of Wallpapers and Target Markets 67
19.4 Prices of Wallpaper 68
20 Doors and Windows 68
20.1 Exports of Doors, Windows, and Door Frames 68
20.2 Imports of Doors, Windows, and Door Frames 69
21 Electrical Installations 70
21.1 Exports of Lights Switches and Target Markets 70
21.2 Imports of Light Switches 70
21.3 Exports of Light Bulbs and Lamp Holders 71
21.4 Imports of Light Bulbs and Lamp Holders 71
21.5 Exports of Building Wires and Cables 72
21.6 Imports of Building Wires and Cables 73
22 Summation 74