Covering Iranian economy,
business and current affairs.

Single Report

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

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