Investment Property in Tehran

Investment Real Estate in Tehran

Investment Property in Tehran
Investment Property in Tehran

Tehran property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Tehran.

Search Map of Tehran Investment Real Estate

Tehran (; Persian: تهران Tehrân [tehˈɾɒːn] (listen)) is the largest city in Tehran Province and the capital of Iran. With a population of around 9 million in the city and around 16 million in the larger metropolitan area of Greater Tehran, Tehran is the most populous city in Iran and Western Asia, and has the second-largest metropolitan area in the Middle East, after Cairo. It is ranked 24th in the world by metropolitan area population.

In the Classical era, part of the territory of present-day Tehran was occupied by Rhages, a prominent Median city destroyed in the medieval Arab, Turkic, and Mongol invasions. Modern Ray is an urban area absorbed into the metropolitan area of Greater Tehran.

Tehran was first chosen as the capital of Iran by Agha Mohammad Khan of the Qajar dynasty in 1786, because of its proximity to Iran’s territories in the Caucasus, then separated from Iran in the Russo-Iranian Wars, to avoid the vying factions of the previously ruling Iranian dynasties. The capital has been moved several times throughout history, and Tehran is the 32nd national capital of Persia. Large-scale demolition and rebuilding began in the 1920s, and Tehran has been a destination for mass migrations from all over Iran since the 20th century.

Tehran is home to many historical locations, including the royal complexes of Golestan, Sa’dabad, and Niavaran, where the two last dynasties of the former Imperial State of Iran were seated. Tehran’s most famous landmarks include the Azadi Tower, a memorial built under the reign of Mohammad Reza Shah of the Pahlavi dynasty in 1971 to mark the 2,500th anniversary of the founding of the Imperial State of Iran, and the Milad Tower, the world’s sixth-tallest self-supporting tower, completed in 2007, and the Tabiat Bridge, completed in 2014.

Most of the population are Persian, and roughly 99% of them understand and speak the Persian language, but large populations of other ethnolinguistic groups live in Tehran and speak Persian, as majority of the minorities are Persianized and assimilated.

Tehran has an international airport (Imam Khomeini Airport), a domestic airport (Mehrabad Airport), a central railway station, a rapid transit system, Tehran Metro, a bus rapid transit system, trolleybuses, and a large network of highways.

Plans to relocate Iran’s capital from Tehran to another area, due to air pollution and earthquakes, have so far not yet received approval. A 2016 survey of 230 cities across the globe by consultant Mercer ranked Tehran 203rd for quality of life. According to the Global Destinations Cities Index in 2016, Tehran is among the top ten fastest growing destinations.

The City Council declared October 6 Tehran Day in 2016, celebrating the day in 1907 when the city officially became the capital of Iran.

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The financial stability of Tehran has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Tehran

 

Renting out your Tehran buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Tehranare – preparation is key:

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Tehran and be prepared to change your initial outlook.
  • Thoroughly research the Tehran location with a special emphasis on fringe areas outside the main Tehran metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Tehran.
  • Ensure that your target investment property in Tehran appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

Flipping Investment Property in Tehran

Flipping property in Tehran

 

Flipping property is when we advise clients to buy a Tehran property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Tehran market has a time to react to the renovation.

 

The Flipping Strategy in Tehran

 

Investment property flipping in Tehran is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Tehran real estate investments are sometimes referred to by professionals as ‘distressed’ Tehran real estate.

 

What is distressed Tehran property:

 

  • Tehran property in need of renovation
  • Tehran real estate with a change of puropose and use
  • Oversold Tehran property
  • Bank repossessions in Tehran

 

Put simply, long term investors in Tehran purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Tehran investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Tehran property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Tehran use a minimum profit value of 22% when looking at potential Tehran projects. The reason for this is because there are lots that can go wrong in Tehran property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Property Secured Investments is a Private Equity fund that invests in Tehran and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

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