The remarkable village of Kandovan in E. Azerbaijan, Iran, is carved out of volcanic rock formations produced by lahar from the nearby Mt. Sahand. Houses were built as long as 700 years ago. It is located in northwestern Iran, about 88 miles from the major city of Tabriz. Kandovan is inhabited and has the same fairyland quality of similar houses in Cappadocia, Turkey. Check out the many wonderful Panoramio photos and 360s on the scene.
In the Cine Mountains of southwest Turkey, I happened upon two amazing houses. Not a village, just two individuals so creative I'd love to live in one myself. The setting is of enormous boulders covered in moss and lichens. It's a little hard to work out how they have been constructed, especially the one with a massive slab of rock on top and walls that look like clay over stone masonry. How does it take the weight? You've got to see the Panoramios.