Lotfullah Forouzandeh, the deputy mayor of Tehran, has admitted Iran’s dependence on Chinese support in meeting the country’s urgent housing needs.

He said a lack of indigenous technological capability is lacking in the capital which has a huge housing shortfall.

"For us, industrialization means the ability to construct houses within a year, with a lifespan ranging from 40 to 80 years," stated Forouzandeh, Iran unable to do this alone.

Chinese financing has also played a role with oil barters enabling Iran to fund the projects.

Despite oil prices ranging between 75-82 dollars in recent months, Iran International reported in December that Tehran offers substantial discounts to China, pricing as low as $37 per barrel.

The admission comes amidst Tehran Municipality's efforts to address pressing urban challenges, including housing shortages and transportation congestion.

Mayor Alireza Zakani's recent visit to China resulted in several agreements with Chinese firms to undertake infrastructure projects in the Iranian capital, spanning construction and transportation sectors.

With a total debt exceeding $390 billion, as reported by The New York Times last year, the involvement of Chinese construction firms in Iran's housing sector poses the risk of potential bankruptcies post-project initiation, leading to a plethora of legal complications.

However, while Chinese involvement offers solutions to Iran's economic challenges, it also worsens the crisis for domestic construction firms, many of which have succumbed to bankruptcy amid soaring costs and dwindling demand in the housing sector