A total of 2,094 homes were sold in the capital city Tehran during the first month of the current fiscal year (March 21-April 20), registering a 60.3% decrease compared with the preceding month but a 68.5% increase compared with the same month of last year.
Data published by the Central Bank of Iran on its website also indicate that the average price of each square meter of a residential property in Tehran stood at 293.22 million rials ($1,238) during the month under review, showing a rise of 91.7% over last year’s same month as average prices were registered at 152.95 million rials ($645).
Home prices in the capital city dropped by 3.1% compared to 302.74 million rials ($1,278) in the month before.
The above figures reflect the seasonal slump in the real-estate market at the beginning of the Iranian New Year, which is followed by a fortnight-long holiday and closure of businesses.
Details of Property Deals
The CBI data show that during the month ending April 20, newly-built residential properties up to five years old constituted the highest proportion of deals at 35.1% (or 734 deals), down by 6.5 percentage points compared with the same month of last year.
That lost share was added to homes with a lifespan of six to 10 years, 11 to 15 years and 16 to 20 years. Homes with a lifespan of six to 10 years, 11 to 15 years and 16 to 20 years accounted for 20.5%, 13.5% and 17.4% of total deals compared with the same month of last year’s 18.4%, 10.9% and 15.5%, respectively.
The share of homes that were above 20 years old was 13.5% of the total home deals during the month ending April 20, compared with 13.6% of the same month of last year.
The distribution of dealt properties shows that among Tehran’s 22 districts, District 5 grabbed the highest share of total deals at 14.1%. It was followed by districts two and 10 with a share of 9.4% and 8.2%, respectively.
All-in-all, 10 districts (one, two, four, five, seven, eight, 10, 11, 14 and 15) grabbed the lion's share of the deals at 71.8% with the remaining 12 districts holding a 28.2% share.
Among Tehran's 22 districts, District 1 registered the highest average home price of 668 million rials ($2,820) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 134.5 million rials ($567). The aforesaid numbers show a respective increase of 113.3% and 81.4% YOY.
Residential units with an average price range of 150 million rials ($633) to 200 million rials ($844) per square meter and those with an average price range of 200 million rials to 250 million rials ($1,055) were the most popular in Tehran during the Iranian month under review, as they both grabbed a 16.2% share of all deals.
They were followed by units priced at 100 million rials ($422) to 150 million rials per square meter with a share of 13.1% and homes priced at 250 million rials to 300 million rials ($1.266) per square meter with a share of 11.7%.
From the total number of deals, 60.7% belonged to homes cheaper than the average per-square meter price of the city (i.e., 293.2 million rials).
Residential units with a floor area of 60-70 square meters registered the highest number of sales with a 15.7% share of total deals.
Units with an area of 50-60 square meters and 40-50 square meters came second and third with a share of 14.3% and 12.4%, respectively. All-in-all, residential properties with an area of less than 80 square meters had a 56.7% share of total deals.
The CBI data further show that Tehran’s homes worth between 5 billion rials ($21,114) and 10 billion rials ($42,229) were the most popular with a 22.5% share of total deals. These were followed by homes with a price tag of between 10 billion rials and 15 billion rials ($63,344) and those priced at between 15 billion rials and 20 billion rials ($84,459) with a share of 16.7% and 11% of total deals respectively.
Collectively, homes valued under 20 billion rials had a 53.1% share of total home deals in Tehran during the first month of the current year.
The central regulator also reports changes in tenancy prices in the capital city and across the urban areas.
According to CBI, the price of rented residential units in Tehran and across urban areas increased by 32.3% and 36.1% respectively during the first month of the current Iranian year compared with the corresponding month of the year before.
Fiscal 2020-21 in Nutshell
In the last Iranian year that ended on March 20, 2021, the number of home deals finalized in Tehran totaled 83,303, which show a 0.3% decline year-on-year.
In the same period, the average price of each square meter of a home in the capital registered a year-on-year rise of 80.3% compared with the year before.
A total of 5,273 homes were sold in the capital during the 12th month of the last fiscal year (Feb. 19-March 20), registering a 34.6% increase compared with the preceding month but a 48.4% decline compared with the same month of last year.
The average price of each square meter of a residential property in Tehran rose by 93.7% over last year’s same month. Home prices in the capital city increased by 6.6% compared to the 11th month of last year.
