Estimating the value of land in Iran’s economy

Based on the System of National Accounts (SNA) and the European System of Accounts (ESA), land is classified as a natural resource and a non-produced non-financial asset. Due to its significant share in an economy’s assets, evaluating the value of land is crucial for preparing the national balance sheet and national wealth. This requires classifying land types according to their use and pricing them accordingly. The main types of land include land underlying dwellings, land underlying other buildings and structures, agricultural, and forestry lands. This study estimates the value of land as an economic asset in Iran, providing the first comprehensive evaluation of various land types in the country. Lands underlying dwellings are valued using residual (benchmark approach), net present value (NPV), and land-to-structure ratio (LSR) methods. Lands underlying other buildings and structures are valued using the LSR method, while agricultural and forestry lands are valued based on the NPV of expected future incomes. The results of this study show that the total estimated value of land in Iran ranges from IRR 32,862 trillion to IRR 918,986 trillion during 2015–2023. Lands underlying dwellings constitute the largest share of this value at 45.59%, with the household sector being the largest owner. Agricultural lands have the second-largest share, followed by land underlying buildings other than dwellings (on average, approximately 32.66% and 21.56%, respectively), while forest lands have the smallest share of the total land value (on average 0.19%).