After declining for nine consecutive months, home sales in Tehran showed a 39% increase in the Iranian month of Bahman (Jan. 21-Feb. 19) compared with the previous month.
This comes as the latest report by the Central Bank of Iran reveals that sales were 49.2% lower compared with last year’s same month.
A total of 9,343 homes were sold in Tehran during the month compared with 6,721 home deals in the previous month and 18,392 in the similar month of the fiscal 2017-18.
The rise in housing prices in the capital city continued their upward trend in the penultimate month of the year, both compared with the preceding month and the similar month of last year.
The average price of each square meter of a residential unit in Tehran stood at about 99.67 million rials ($727) during the month, showing an annual surge of 85.1% as average prices were registered at 53.84 million rials ($392) last year.
Home prices in the capital grew by 1.7% compared with 97.97 million rials ($715) in the previous month.
Property Deals
Data published by CBI on its news website indicate that in Bahman, residential units built up to five years ago grabbed the highest share of the total of 9,343 deals at 44.3%, down by 4.4% compared with the same month of last year.
That lost share was added to homes ranging from six to 10 years and 16 to 20 years, which registered a 16.7% and 14.8% share of total deals. The share of dealings of homes above 20 years has also decreased from 10.6% of the total deals last year to 9.7% this year; they had the smallest share of total deals in Bahman. Homes with an age of 11 to 15 posted a share of 14.5% of total deals.
The distribution of property deals shows that among Tehran's 22 districts, District 5 once again grabbed the highest share of total deals at 13.9%. It was followed by districts 4 and 2 with a respective share of 9.1% and 8.2%.
Hikes in Tehran home prices continued their upward trend in the penultimate month of the year both compared with the preceding month as well as the similar month of last year
All-in-all, 10 districts (5, 4, 2, 10, 14, 15, 8, 7, 11 and 1) grabbed the lion's share of the deals at 71.7% with the remaining 12 districts holding a 28.3% share.
District 9 registered the highest average annual price growth at a whopping 109.2% during the month. District 12 registered the lowest year-on-year average price hike of 61.2%.
District 1 registered the highest average home price at 218.1 million rials ($1,592) per square meter. District 18 offered the capital city's cheapest homes with average per-square meter prices standing at 45.3 million rials ($330). These numbers show a respective increase of 89.1% and 86.7% YOY.
Residential units with an average price range of 50 million rials ($364) to 60 million rials ($437) per square meter were the most in demand during the month, as they grabbed a 9.9% share of all deals.
They were followed by units priced at 60 million rials to 70 million rials ($510) per square meter and 70 million rials to 80 million rials ($583) per square meter with a share of 9.8% and 9.7%, respectively.
From the total number of deals, 58.9% belonged to homes cheaper than the average per square meter price of the city (99.7 million rials/$727).
Residential units with a floor area of 50-60 square meters and 60-70 square meters registered the highest number of deals with a 15.1% share of total deals each.
Units with an area of 70-80 square meters and 40-50 square meters stood at second and third places with a share of 12.4% and 11.4% respectively.
Units with an area of under 80 square meters had a 57.3% share of total deals.
CBI data further show that homes in Tehran worth between 3 billion rials ($21,897) to 4.5 billion rials ($32,846) were the most popular with an 18.2% share of total deals.
Homes with price tags of between 1.5 billion rials ($10,948) and 3 billion rials and between 4.5 billion rials and 6 billion rials ($43,795) came next with a respective share of 15.3% and 12.7% of total deals. Collectively, homes valued under 6 billion rials had a 47.7% share of total home deals in Tehran during the month under review.
11-Month Perspective
During the 11 months of the current Iranian year (ending Feb. 19), the number of home deals finalized in Tehran totaled 113,984. This figure was 32.5% down compared with the corresponding figure of last year.
In the same period, the average price of each square meter of a home in the capital stood at about 79.63 million rials ($581), signaling a YOY surge of 68.8%.
Tenancy in Urban Areas
The central regulator also reported changes to tenancy prices in the capital and across the country.
According to CBI, the price of rented residential units in Tehran and across all urban areas increased by 20.4% and 17.5% YOY respectively compared with the similar period of last year.
