WANA (Aug 04) – With the end of the 12-day war and the launch of damage assessment operations, officials announced that around 8,700 residential units in Tehran were damaged, of which nearly 900 require complete demolition and reconstruction. The cost of rebuilding and reinforcing these units has been estimated at approximately 100 trillion rials.

 

Initially, the Housing Foundation was tasked with the reconstruction. However, in a recent decision, the responsibility was reassigned — to the municipality in Tehran and to provincial governments in other regions.

A view of the aftermath of an Israeli strike on a building on Monday, after the ceasefire between Israel and Iran, in Tehran, Iran, June 26, 2025. Majid Asgaripour/WANA (West Asia News Agency)

Immediate Actions by Tehran Municipality

Recognizing the critical situation, the Tehran Municipality first arranged temporary accommodation for war-affected families in 11 hotels (two owned by the municipality and the rest rented), providing shelter for 1,300 people. In addition, 150 trillion rials were allocated as housing deposits to help families rent new homes.

 

According to Abdolmotahhar Mohammadhkani, the municipality’s spokesperson:

 

  • 5,095 units with minor damage have been repaired.
  • 1,138 units with moderate damage have received financial support.
  • 2,078 units sustained losses under 30 billion rials.
  • 900 units require complete demolition and reconstruction.

 

Mohammadhkani noted that the complexity of ownership in these 900 units — due to multiple landlords — has slowed down the reconstruction process.

A picture of a child is seen at his house following an Israeli strike on a building last week, after the ceasefire between Israel and Iran, in Tehran, Iran, June 25, 2025. Majid Asgaripour/WANA (West Asia News Agency)

Additional Support

Beyond temporary housing, the municipality has provided 350 families so far with shopping vouchers worth 2.5 billion rials each for purchases from Shahrvand stores. For damaged household appliances and vehicles, compensation falls under the responsibility of the government and insurance companies, with the Ministry of Industry, Mine, and Trade pledging to supply replacement cars.

 

Financing the Reconstruction

Rebuilding the 900 units slated for demolition requires 100 trillion rials. The municipality will cover part of the costs from its own treasury and the rest in cooperation with the government and private contractors. Under a government resolution and Article 5 Commission approval, builders are permitted to increase building density by up to 50%, allowing them to cover construction expenses through additional floors.

A building stands damaged in the aftermath of Israeli strikes, in Tehran, Iran, June 14, 2025. Majid Asgaripour/WANA (West Asia News Agency)

Builders’ Participation

Mohammadhkani reported that in a meeting with 190 major Tehran contractors, many expressed readiness to participate in rebuilding the damaged units. This collaboration could significantly accelerate the capital’s reconstruction process.