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.

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Search Map of Tehran Investment Real Estate

Tehran (; Persian: تهرانŤehrân [tehˈɾɒːn] (About this soundlisten)) is the capital of Iran and Tehran Province. With a population of around 8.7 million in the city and 15 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 the population of its metropolitan area.

In the Classical era, part of the territory of present-day Tehran was occupied by Rhages, a prominent Median city. It was subject to destruction through the medieval Arab, Turkic, and Mongol invasions. Its modern-day inheritor remains as 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, in order to remain within close reach of Iran’s territories in the Caucasus, before being separated from Iran as a result of the Russo-Iranian Wars, and 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 collections, 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 year of the foundation of the Imperial State of Iran, and the Milad Tower, the world’s sixth-tallest self-supporting tower which was completed in 2007. The Tabiat Bridge, a newly-built landmark, was completed in 2014.

The majority of the population of Tehran are Persian-speaking people, and roughly 99% of the population understand and speak Persian, but there are large populations of other ethno-linguistic groups who live in Tehran and speak Persian as a second language.

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

There have been plans to relocate Iran’s capital from Tehran to another area, due mainly to air pollution and the city’s exposure to earthquakes. To date, no definitive plans have been approved. A 2016 survey of 230 cities 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.

October 6 is marked as Tehran Day based on a 2016 decision by members of the City Council, celebrating the day when the city was officially chosen as the capital of Iran by the Qajar dynasty back in 1907.

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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 such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
  • You may think that managing your Tehran properties yourself is an easy option, but are these savings justifiable when you run into Tehran red tape? Physis Realty Tehran office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Tehran buy-to-rent sector.

With our expert guidance, investing in Tehran provides the secure knowledge that your money is working harder than it would in a local Tehran bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Tehran, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Tehran property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

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.

Luxury Property in Tehran

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Tehran, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Tehran should be entrusted to only the highest-quality agency.

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