A plane crashed moments after taking off in Iran’s capital, killing 48 people on board and narrowly avoiding more deaths on the ground.

The Antonov An-140 turboprop plane was run by Sepahan Airlines, and had 40 passengers, including six children, and eight crew.

Just after leaving Mehrabad airport, near central Tehran, the plane plummeted into a nearby residential area at 9.18am local yesterday, close to a busy market.

Witnesses say it was a miracle no one on the ground was hurt or killed.

AAP reports black smoke billowed from the wreckage, with officials saying the plane hit a wall and trees, close to the market.