Tehran Province, wherein lies the capital city, has the most expensive residential land in the country.
According to the findings of the Statistical Center of Iran, during the third quarter of the current Iranian year (Sept. 23-Dec. 21, 2019), the average price of each square meter of land or land of a rundown residential property (residential units that are considered old to a degree that only the underlying land is useful for construction) in urban areas stood at 137.84 million rials ($872) in Tehran.
Alborz Province was a distant second regarding residential land prices with each square meter valued at 15.96 million rials ($101), almost eight times cheaper than Tehran’s average price.
The average prices of residential land in Isfahan and Qom stood at 15.74 million rials ($99.6) and 15.09 million rials ($95.5), respectively. Lorestan Province offered the cheapest residential land in the country with an average price of 3.72 million rials ($23.5) per square meter, Bank Maskan's news portal Hibna reported.
Bank Maskan is the state-run agent bank of the housing sector in Iran.
Q3 Land Prices Up 93% YOY
According to the SCI report, the average price of each square meter of land or land of a rundown residential property (residential units that are considered old to a degree that only the underlying land is useful for construction) in Iran's urban areas went up by 93.5% during Q3 year-on-year. Prices increased by 11.7% compared with the preceding quarter (Q2 of the current Iranian year.)
The minimum price of each square meter of land or land of a rundown property in urban areas stood at 879,000 rials ($5.5) while the maximum was at 741 million rials ($4,689), bringing the average to 40.58 million rials ($256).
The number of land deals made during the current Iranian year’s Q3 decreased by 34.7% compared with the similar period of last year and 23.7% compared with the second quarter of the current year.
The average area of each dealt land or land of a rundown property in real-estate agencies across urban areas was reported at 242 square meters by SCI.
Home Prices Rise 59% YOY
The report also shows the average price of each square meter of residential floor area in Iranian cities surged by 59.6% in Q3 on a year-on-year basis. When compared with the previous quarter, prices indicated a growth of 14.3%.
The minimum price of each square meter of residential floor area across urban areas during Q3 stood at 1.24 million rials ($7.8) with the maximum price registered at 642.87 million rials ($4,068). The average price was about 41.87 million rials ($265).
In terms of the number of deals for residential floor areas, the current year’s Q3 saw a decline of 45.9% compared with the Q3 of last year. Against the Q2 of the current year, the number of such deals registered a decrease of 9.5%.
SCI put the average dealt floor area at 109 square meters while putting the average age of residential units at 11 years.
Size of Rented Homes
The Hibna report also shows the average size of homes rented in urban areas of the country's 31 provinces in Q3 was 96 square meters.
In some provinces, rented homes were as big as 150 square meters (average) but in Tehran 80 square meters was the average size of rented homes in Q3, which was the smallest rented space in the country.
The largest rental residential units among Iranian provinces in Q3 was recorded for South Khorasan with 173 square meters and an average rent of 43,700 rials ($0.27) per square meter (monthly).
In fact, the province is among the most affordable provinces to live in for renters.
Ilam came in second in terms of offering the biggest homes to renters with an average of 156 square meters. The average rent per square meter for Ilam was reportedly 37,600 rials ($0.23). It was the most affordable province to rent a home in Q3.
Fars Province offered the third largest rental homes with an average area of 153 square meters in Q3. Price-wise, Fars Province hovers around the middle of the table, suggesting that it is neither an expensive province nor an affordable province to rent a home in. The average price of a square meter of rented home in Fars was 77,000 rials (0.48) in Q3.
Hormozgan, Tehran, Alborz and Gilan were the most expensive provinces for renters in Q3.
Q3 Rents Rise 32% YOY
The SCI figures on monthly home rents, plus 3% collateral legally paid to rent one square meter of residential floor area, show the average rent increased by 32% during the current year’s Q3 compared with the Q3 of last year while they grew by 6.7% compared with the second quarter of the current year.
The minimum price of each square meter of residential floor area rented in the country’s urban areas stood at 1,534 rials ($0.009) with the maximum registered at 1.43 million ($14.7), which brings the average to 144,081 rials (91 cents) per month.
Compared with the third quarter of last year, the current year’s third quarter rent deals decreased by 26.3% whereas they decreased by 51.6% compared with the preceding quarter.
SCI reported the average area of total rent deals at 96 square meters and put the average age of rental homes at 13 years.
All figures reported by SCI employ data extracted from the state-run Tenement Management Information System operated by the Ministry of Roads and Urban Development.
Established with the aim of making home purchase and renting deals more transparent, the system requires all certified real-estate agencies to register their deals.
In light of the fact that sudden changes in the number of deals in major cities lead to a significant change in prices across a province or the whole country, the report uses a balanced weighted average for its reports to identify real price changes by eliminating the effect of home deals.
The related weights used were based on occupied residential units surveyed during a general census conducted in the fiscal 2015-16.
