DIMENSION & MORE

Project Code: 0511Dimension & More’s Role in Enabling a Well-Timed and Necessary Shift

Land with commercial permit

Market launch

Project definition

Most mid-to-large-scale real estate projects are shaped by five key factors: 1. Divergent perspectives among owners due to multiple stakeholders, 2. The project’s location, size, and potential, 3. Market conditions and target audience liquidity, 4. Regulatory processes and municipal behaviors, 5. Taxation Despite an ongoing shortage of residential (and to a lesser extent, office) space in Iran — especially in Tehran — and increasing pressure on public institutions to address the issue, meaningful reform of these fourth and fifth factors remains absent. The lack of progress in aligning bureaucratic and tax processes continues to discourage seasoned developers from engaging deeply in this critical sector. If these systems were optimized, significantly more private capital and personal commitment would flow into the industry.

Facts and Figures

Location

District 2

Project Land Area (m²)

5,366

Total Built-up Area (m²)

60,000

Number of Floors

Project Location Characteristics

A vast plot in an economically active neighborhood

The size of the project considering the neighborhood

Proximity to two malls and the Shahrvand store

Location on elevated terrain

Project's administrative-commercial location

Decent access

A commercial zoning permit

Adjacency to Espinas Palace Hotel

Adjacency to a public park

The success of Opal Mall nearby

Characteristics that appeared to make the land suitable for commercial-office use, leading to an initial and default perception of the project as a commercial-office development.

Yet a closer analysis revealed that the neighborhood had no real need for further commercial-office space; however, this reality was initially overlooked due to prevailing mental assumptions.

Meanwhile, a deeper assessment showed that the land, in terms of its context, location, and local needs, held strong potential for residential development — a potential often ignored because of dominant commercial-oriented thinking.

Analysis of the above characteristics showed that for project success and alignment with neighborhood and district needs, its use should be defined as residential, and the neighborhood has no need for a new commercial-administrative project. Understanding the need for residential complex(es) with mature facilities to meet new and existing residents' needs was the result of this analysis.

Key Challenges

The commercial-only permit and zoning limitations conflicted with a clear, data-driven need for residential use. Changing the land use required a justification plan and two major amendments to Tehran’s detailed urban plan: 1. Demonstrating neighborhood-level demand for residential vs. oversupply of commercial, 2. Rezoning from "Commercial (S)" to "Residential (R)" — a particularly complex change.
The project timeline would be significantly extended due to these zoning and planning requirements.
The landowners were not fully aligned on the project's limitations and were more focused on a full sale, given the high municipal fees for commercial density permits compared to residential ones.
Developers favored joint-venture models, while landowners — due to previous negative experiences — resisted the idea of partnerships.
Mid-negotiation approval of Iran’s “Vacant Homes Tax” created uncertainty and further slowed the market.

Approach Taken

Identified and shortlisted developers and investors capable of purchasing the land outright — those not pressed for immediate demolition or returns, and open to long-term strategic plays.

Prioritized candidates with: A. Strong financial capacity and patience for long-term investment B. Experience and focus needed to navigate and execute the necessary zoning amendments.

Outcomes

Created an opportunity to influence Tehran’s detailed urban plan in a way that better reflects real urban and citizen needs.
Helped both parties engage in a more thoughtful and time-aware decision-making process, avoiding reactive market behavior in favor of a longer-term, grounded approach.