Data released by the Central Bank of Iran and the Statistical Center of Iran confirm that the housing market in the capital city Tehran is falling deeper into a slump.
According to CBI, a total of 5,416 homes were sold in Tehran during the current Iranian year’s seventh month (Sept. 23-Oct. 22), registering a 10.2% fall compared to the previous month and a 1% decrease compared with the corresponding month of the previous year. It considers it the fourth consecutive month of decline in sales.
This is while SCI says a total of 4,830 residential properties were sold during the month under review across Tehran, down from 5,159 in the preceding month, adding that District 5 saw the highest volume of housing deals with 729, while District 19 had the lowest figure with 31.
Tehran has been facing a shortage of housing, as its population continues to grow. However, the surge in prices has resulted in a slump in its housing market.
CBI Report
The CBI report shows that the average price of each square meter of a residential property in Tehran stood at 437.24 million rials ($1,315) during the month under review, registering a 38.2% rise year-on-year.
Home prices in the capital city increased by 1.2% compared with 432.16 million rials ($1,299) in the sixth month of the current fiscal year (ended Sept. 22).
During the month ending Oct. 22, residential properties up to five years old constituted the biggest proportion of homes sold (1,551) or 28.6% deals, down by 4.4 percentage points compared with the same month of last year.
The lost share was added to homes with a lifespan of 11-15 years and over 20 years. They accounted for 16.2% and 21.1% of total deals compared with the same month of last year’s 13.7% and 13.1% respectively.
The distribution of sold properties indicates that among Tehran’s 22 districts, District 5 grabbed the biggest share of total sales with 15%, followed by District 10 with 9.3% and District 2 with 8.7%.
All-in-all, 10 districts (5, 10, 2, 4, 14, 7, 8, 1, 15 and 11) grabbed the lion's share of sales with 74.4%, with the remaining 12 districts holding a 25.6% share.
Among Tehran's 22 districts, District 1 registered the highest average home price of 883.3 million rials ($2,656) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 213 million rials ($640). The aforesaid figures show a respective increase of 26.8% and 40.7% YOY.
Residential units with an average price range of 300 million rials ($902) to 350 million rials ($1,052) per square meter were the most popular in Tehran during the Iranian month under review, as they accounted for 12.2% of all deals. They were followed by units priced at 250 million rials ($751) to 300 million rials per square meter with a share of 11% and homes priced at 350 million rials to 400 million rials ($1,203) per square meter with a share of 10.9%.
From the total number of deals, 56.1% belonged to homes cheaper than the average per-square meter price of the city (i.e., 437.24 million rials, or $1,315).
Residential units with a floor area of 50-60 square meters registered the highest number of sales, with a 15.2% share of the total.
Units with an area of 60-70 and 40-50 square meters ranked second and third with a respective share of 14.7% and 11.8%. All-in-all, residential properties with an area of under 80 square meters had a 56.8% share of total deals.
The data indicate that Tehran’s homes worth between 10 billion rials ($30,075) and 15 billion rials ($45,112) were the most popular with a share of 14.6% of the total deals. These were followed by homes with a price tag of between 15 billion rials and 20 billion rials ($60,150), as well as those priced at 20 billion rials to 25 billion rials ($75,187) with a respective share of 12.8% and 9.5% of total deals.
Collectively, homes valued under 30 billion rials ($90,225) had a 50.3% share of total home deals in Tehran during the seventh month of the current year.
The central regulator also reported changes in tenancy prices in the capital city and across urban areas.
According to CBI, residential rents in Tehran and across urban areas increased by 40.9% and 46.8% respectively during the sixth fiscal month year-on-year.
SCI Report
The annualized inflation of residential buildings in Tehran reached 32.4% in the month ending Oct. 22, according to the Statistical Center of Iran.
Year-on-year and month-on-month inflation reached 44.7% and -0.1% respectively.
The report has put average price at 464.79 million rials ($1,409) per square meter, noting that among the capital city’s 22 districts, District 1 registered the highest average price of 995.41 million rials ($3,018) while District 18 had the lowest rate of 226.89 million rials ($687) per square meter.
