More than half of Tehran Municipality's revenue is provided by density sales/municipalities even profit from construction violations.
Reza Alizadeh, housing researcher:
The municipalities of Iran, especially the municipality of Tehran studied in this study, have a high dependence on income from density sales; So that more than half of the income of Tehran municipality is provided from this place. Until the 1360s, most urban resources were provided from the general government budget, but with the construction boom in the 1370s, the sale of density became one of the main sources of income.
With the reduction of the construction boom, in addition to the sale of density, municipalities will also generate income through section 5 and section 100 fee approvals; For example, receiving fees for changes in building regulations, removing parking or allowing violations that should have been prevented before. In fact, the production of income was not reduced only to the sale of density and to it was also added the collection of fees for changes in regulations and construction violations.