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Martyr Leaders economic thoughts in housing sector

· 7 min read

Martyr Leader’s economic thoughts in housing sector

TEHRAN- The head of the Think Tank of Intelligent Governance, referring to the importance of revisiting the economic thoughts of the Martyr Leader of the Revolution, said: Housing is one of the topics to which the Martyr Leader always paid special attention.

Martyr Leader’s economic thoughts in housing sector

According to the Mehr News Agency, Seyyed Taha Hossein Madani added: In this regard, the General Policies of the System on Housing Affairs, which were communicated by the Martyr Leader, can be considered a general outline of the housing issue in his thought, as well as a roadmap for executive, legislative, and supervisory bodies, and the system's policy and direction in this area.

* Outlining policy in housing sector

The head of the Think Tank of Intelligent Governance continued: The issues included in this policy encompass matters such as land management for housing supply and urban and rural development within the framework of land capacity and urban planning policies and regulations and national development and construction plans, the creation and development of new cities, the revitalization of deteriorated urban and rural textures through efficient methods, government planning to provide housing for low-income and needy groups, support for the establishment and strengthening of charitable institutions and popular initiatives to provide housing for underprivileged strata, comprehensive planning to improve the rural housing situation with priority given to areas vulnerable to natural disasters and in accordance with local characteristics, the establishment and reform of the tax system and the creation of a land and housing database, support for the production of mass and industrial housing plans, making construction standards, national building regulations, and energy-saving plans mandatory, observing cultural values and preserving the dignity and prestige of the family in housing architecture, and strengthening research and elevating the level of scientific knowledge in the housing field.

* Housing in words of Martyr Leader

Madani noted: In addition to these General Policies communicated by him, the issue of housing has been the focus of the Martyr Leader of the Revolution in his remarks over recent years. In one of his speeches, he stated: "Those in charge of housing affairs must increase their efforts to produce as much housing as possible at reasonable prices, especially for the low-income classes of society, because this is an important and necessary measure on the path to the country's development and construction."

He added: The Martyr Leader of the Revolution also stated in another speech: "We are very behind in the housing issue, and you can see the results: house prices and rents are exorbitant, and people are truly suffering. One of the definite priorities in economic issues is the housing sector."

The head of the Think Tank of Intelligent Governance noted: Ayatollah Khamenei also said about the housing issue: "In the category of social issues and others, housing is a seriously important and key issue; in the household expenditure basket, housing has a very large share, and the housing issue is very important."

Madani added: Apart from the Martyr Leader's emphasis and his demand for movement toward improving this challenge, he considered housing one of the drivers of the economy and stated in a speech: "One point in the economic issue is paying attention to the driving sectors of the economy. Some sectors are truly driving. For example, suppose the housing sector – which experts say if the housing sector gets going, numerous other sectors will get going – or important industries such as the steel industry, the automotive industry, energy and petrochemical sectors, and the like, when they become operational, they have a driving aspect; these must be set in motion, and in these sectors, especially, coordination among those in charge is very important."

* Emphasis on reducing government involvement and increasing supervision

The head of the Think Tank of Intelligent Governance, referring to the Martyr Leader's emphasis on reducing government involvement in economic affairs, stated: In his New Year's speech in 2023, at the gathering of pilgrims and visitors at the holy shrine of Imam Reza, he declared: "Important sectors of the economy should be in the hands of the people. We have repeated many times that state-owned enterprises, government companies, and semi-government companies should not compete with private enterprises, and let the people carry out production. The government should reduce its involvement and increase supervision; reduce intervention and increase supervision."

He noted: This demand of the Martyr Leader can also be extended to the housing sector, because the experience of direct government intervention in housing construction shows that the entry of large state-owned and semi-state-owned companies into the construction sector has disrupted this vast and important market. Therefore, the government's role in the housing sector should be defined as facilitating, providing the grounds, and carrying out precise supervision to prevent the deviation of resources.

* General overview of country's housing economy

The head of the Think Tank of Intelligent Governance added: Considering the status of housing in the thought of the Martyr Leader, the General Policies communicated by him, the transformation of housing from an economic issue into a socio-economic mega-challenge, and the role and responsibility of scientific and research institutions in helping to solve this mega-challenge, the Think Tank of Intelligent Governance over the past few years has made its proposals available to the responsible institutions and public opinion to reduce the scope of this problem.

Madani then presented a general picture of the housing situation in the country and stated: According to the latest statistics, the country's housing market faces 5 to 6 million accumulated demands. Also, the number of deteriorated and in-need-of-reconstruction units is estimated at about 8 million units. Thus, to achieve balance in supply and demand, the country needs to construct 1.5 million new residential units annually, and if this target is not met, the housing sector imbalance will double by 2031, reaching 12 million units.

The head of the Think Tank of Intelligent Governance noted: Weakness in financing and the low speed of implementing mass-construction projects compared to inflation are among the most important factors for the accumulation of demand in the housing market. Although efforts have been made to address these challenges through instruments such as the Building Pre-Sale Law and gradual purchase models, due to the lack of specialized scientific and research institutions, these legal capacities have not been able to have a significant impact on the housing economy.

Madani noted: In conclusion, it must be said that the housing issue in Iran has gone beyond a merely civil engineering challenge and has become a socio-economic mega-challenge rooted in supply shortages, a weak financing system, inefficiency of some executive mechanisms, and inflationary pressures. In this framework, considering the General Policies communicated by the Martyr Leader of the Revolution and his demands in the housing sector, the path to balancing the market can be paved with a set of combined policies, including precise differentiation of demand types and focusing support on needy groups, along with reducing government involvement and increasing its supervisory role, reforming key laws such as pre-sales, targeted use of government lands, developing modern financing instruments, utilizing data, technology, and precise decision-making, and strengthening private and popular sector participation.

The head of the Think Tank of Intelligent Governance said in conclusion: Special attention to the recommendations of the Martyr Leader and, subsequently, the statements of the third Leader of the Revolution, can certainly be instrumental in improving the country's housing situation.

source: tehrantimes.com