Since at least 2008, scientists have warned that unchecked groundwater pumping for the city and for agriculture was rapidly draining [Iran’s] aquifers. The overuse did not just deplete underground reserves—it destroyed them, as the land compressed and sank irreversibly. One recent study found that Iran’s central plateau, where most of the country’s aquifers are located, is sinking by more than 35 centimeters each year. As a result, the aquifers lose about 1.7 billion cubic meters of water annually as the ground is permanently crushed, leaving no space for underground water storage to recover, says Darío Solano, a geoscientist at the National Autonomous University of Mexico, who was not involved with the study.
Some of the largest cities in the world, including São Paulo, Mexico City, Cape Town, Bangalore, and Tehran, are today facing critical water shortages. In the case of Tehran, the situation is so dire that Iranian president Masoud Pezeshkian has publicly said that the country now has no choice but to move its capital from Tehran to the southern part of the country:
Amid a deepening ecological crisis and acute water shortage, Tehran can no longer remain the capital of Iran, the country’s president has said.
The situation in Tehran is the result of “a perfect storm of climate change and corruption,” says Michael Rubin, a political analyst at the American Enterprise Institute.
“We no longer have a choice,” said Iranian president Masoud Pezeshkian during a speech on Thursday.
This will be expensive, and it won’t solve all of the country’s problems, but forcing a bunch of people out of the city will help to relieve some of the localized pressures. Tehran has a population of nearly 10 million, and the metro region is estimated at over 14 million, making it the second largest city in the Middle East.
Of course, there’s a city-building lesson in all of this: If you’re at this stage of capitulation, it means you’re too late. Water scarcity is about physical scarcity, but it’s generally also a failure of governance, infrastructure, and demand management. Proactive adaptation is always cheaper, easier, and safer than waiting until the last minute to adopt desperate measures.
Cover photo by Behnam Norouzi on Unsplash

According to the Financial Times, Cape Town's population (metropolitan area) grew by 27.6% from 2011 to 2022, landing at approximately 4.77 million. Last year it was estimated at 4.97 million. At the same time, residential property prices increased by about 160% during the period from 2010 to 2024, outpacing all other cities in South Africa. Last year the average price of a home increased by 8.5% in Cape Town versus the national average of 4.5%. And as is the case in most desirable cities around the world, this has some people worried.

To celebrate the launch of their Guide to Cosy Homes (2015), Monocle Films produced a number of home tours.
Die Es, pictured above, is the home of South African architects Gawie and Gwen Fagan. They started building their home in 1964, just as they were starting their practice.
Because of this, they had little money and had to do a lot of the work themselves. They sold their car to buy a concrete mixer.
Although they didn’t set out to explicitly design a “Cape” house, it ended up that way, with heavy thermal masses, white walls, and so on.
The architecture also relates very closely to the surrounding landscape – as it should – in the way in which it frames views of the water and mountains.
The mediterranean climate also really comes through in the materiality of the home and the connections to outside.
If you’d like to watch the 5 minute tour of Die Es, click here.
Since at least 2008, scientists have warned that unchecked groundwater pumping for the city and for agriculture was rapidly draining [Iran’s] aquifers. The overuse did not just deplete underground reserves—it destroyed them, as the land compressed and sank irreversibly. One recent study found that Iran’s central plateau, where most of the country’s aquifers are located, is sinking by more than 35 centimeters each year. As a result, the aquifers lose about 1.7 billion cubic meters of water annually as the ground is permanently crushed, leaving no space for underground water storage to recover, says Darío Solano, a geoscientist at the National Autonomous University of Mexico, who was not involved with the study.
Some of the largest cities in the world, including São Paulo, Mexico City, Cape Town, Bangalore, and Tehran, are today facing critical water shortages. In the case of Tehran, the situation is so dire that Iranian president Masoud Pezeshkian has publicly said that the country now has no choice but to move its capital from Tehran to the southern part of the country:
Amid a deepening ecological crisis and acute water shortage, Tehran can no longer remain the capital of Iran, the country’s president has said.
The situation in Tehran is the result of “a perfect storm of climate change and corruption,” says Michael Rubin, a political analyst at the American Enterprise Institute.
“We no longer have a choice,” said Iranian president Masoud Pezeshkian during a speech on Thursday.
This will be expensive, and it won’t solve all of the country’s problems, but forcing a bunch of people out of the city will help to relieve some of the localized pressures. Tehran has a population of nearly 10 million, and the metro region is estimated at over 14 million, making it the second largest city in the Middle East.
Of course, there’s a city-building lesson in all of this: If you’re at this stage of capitulation, it means you’re too late. Water scarcity is about physical scarcity, but it’s generally also a failure of governance, infrastructure, and demand management. Proactive adaptation is always cheaper, easier, and safer than waiting until the last minute to adopt desperate measures.
Cover photo by Behnam Norouzi on Unsplash

According to the Financial Times, Cape Town's population (metropolitan area) grew by 27.6% from 2011 to 2022, landing at approximately 4.77 million. Last year it was estimated at 4.97 million. At the same time, residential property prices increased by about 160% during the period from 2010 to 2024, outpacing all other cities in South Africa. Last year the average price of a home increased by 8.5% in Cape Town versus the national average of 4.5%. And as is the case in most desirable cities around the world, this has some people worried.

To celebrate the launch of their Guide to Cosy Homes (2015), Monocle Films produced a number of home tours.
Die Es, pictured above, is the home of South African architects Gawie and Gwen Fagan. They started building their home in 1964, just as they were starting their practice.
Because of this, they had little money and had to do a lot of the work themselves. They sold their car to buy a concrete mixer.
Although they didn’t set out to explicitly design a “Cape” house, it ended up that way, with heavy thermal masses, white walls, and so on.
The architecture also relates very closely to the surrounding landscape – as it should – in the way in which it frames views of the water and mountains.
The mediterranean climate also really comes through in the materiality of the home and the connections to outside.
If you’d like to watch the 5 minute tour of Die Es, click here.
But who and what is to blame?
Is it because of tourism? It is estimated that there are some 25,800 active short-term rental listings in the city. Is it digital nomads? South Africa recently launched a Digital Nomad Visa program allowing foreign nationals to live and work in the country provided they can demonstrate an annual income of at least 650,976 ZAR (US$37,500). However, this is a recent thing. Is it foreigners coming with US dollars, euros, and/or pounds? Or is it because of internal migration, which South Africans refer to as "semigration?"
As always, it's a debate. But I think the outcome we are seeing makes intuitive sense for at least three reasons. One, Cape Town is an objectively beautiful and amenity-rich city sandwiched between mountains and the ocean. See above cover photo. It also has a warm and temperate climate. The average high in January (their summer) is 29 degrees and the average high in July (their winter) is 19 degrees. This is a huge competitive advantage — albeit a natural one.
Two, it's a relatively safe place. The above FT article quotes a transplant from Johannesburg saying, "You can't ride your bike in Joburg unless you are in a walled-off estate." If you have the means, that's a strong motivator to move somewhere else. And it's understandably easy to assign a lot of value to safety and security. "Sure, this home may be more expensive, but I can walk to places and ride my bike without fear." That's something worth spending money on.
Lastly, we are all becoming less tethered to specific locations. Digital nomadism and remote work are here to stay. But I don't think this means that people are going to just decentralize and move to the middle of nowhere. I think it means that people are going to increasingly vote with their feet and choose exactly where they want to live their life. What this means is that the need to create better places is only going to become more important. Because more than ever, every place is now in a global competition for talent and investment dollars.
Cover photo by Tobias Reich on Unsplash
But who and what is to blame?
Is it because of tourism? It is estimated that there are some 25,800 active short-term rental listings in the city. Is it digital nomads? South Africa recently launched a Digital Nomad Visa program allowing foreign nationals to live and work in the country provided they can demonstrate an annual income of at least 650,976 ZAR (US$37,500). However, this is a recent thing. Is it foreigners coming with US dollars, euros, and/or pounds? Or is it because of internal migration, which South Africans refer to as "semigration?"
As always, it's a debate. But I think the outcome we are seeing makes intuitive sense for at least three reasons. One, Cape Town is an objectively beautiful and amenity-rich city sandwiched between mountains and the ocean. See above cover photo. It also has a warm and temperate climate. The average high in January (their summer) is 29 degrees and the average high in July (their winter) is 19 degrees. This is a huge competitive advantage — albeit a natural one.
Two, it's a relatively safe place. The above FT article quotes a transplant from Johannesburg saying, "You can't ride your bike in Joburg unless you are in a walled-off estate." If you have the means, that's a strong motivator to move somewhere else. And it's understandably easy to assign a lot of value to safety and security. "Sure, this home may be more expensive, but I can walk to places and ride my bike without fear." That's something worth spending money on.
Lastly, we are all becoming less tethered to specific locations. Digital nomadism and remote work are here to stay. But I don't think this means that people are going to just decentralize and move to the middle of nowhere. I think it means that people are going to increasingly vote with their feet and choose exactly where they want to live their life. What this means is that the need to create better places is only going to become more important. Because more than ever, every place is now in a global competition for talent and investment dollars.
Cover photo by Tobias Reich on Unsplash
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