The average Consumer Price Index for home rents in urban areas in the last fiscal year (ended March 19, 2020) increased by 23.2% compared with the corresponding period of the year before.
The Statistical Center of Iran had put the annual inflation rate for the preceding quarter, which ended on Dec. 21, 2019, at 23.5%.
The highest and lowest average annual inflation rates were registered for Lorestan and West Azarbaijan provinces with 34.2% and 10.1% respectively.
According to the SCI report, CPI for rent levels in urban areas (using the Iranian year to March 2017 as the base year) stood at 169.3 in winter, the fourth quarter of the last Iranian year (Dec. 22, 2019-March 19), indicating a 4% increase compared with the previous quarter.
SCI had put the quarter-on-quarter rent inflation rate for the preceding quarter, which ended on Dec. 21, 2019, at 7.2%.
Semnan and West Azarbaijan provinces registered the highest and lowest QOQ inflation rates for tenants in urban areas with 7.7% and 0.6%, respectively.
The consumer rent price index in urban areas increased by 22.9% in Q4 over the same quarter of the previous year.
SCI had put the year-on-year rent inflation rate for the preceding quarter, which ended on Dec. 21, 2019, at 21.6%.
The highest and lowest rates on a YOY basis in the fourth quarter of the last year were registered for Lorestan with 35.7% and West Azarbaijan with 9.4%.
Housing, Maintenance Services Inflation
The average annual CPI for the housing sector in urban areas increased by 23.3% last year.
SCI had put annual housing inflation rate for Q3 at 23.6%.
The housing CPI stood at 169.5 in Q4, indicating a 4% rise compared with the previous quarter and a 22.9% growth over the same quarter of the year before.
SCI had put the QOQ and YOY housing inflation rates for the preceding quarter, which ended on Dec. 21, 2019, at 7.2% and 21.6%, respectively.
CPI calculated for "maintenance and repair services" of residential units, including plumbing, plastering, home electrification and insulation services, in urban areas stood at 180.4 in Q4, indicating a 5.1% rise compared with the previous quarter and a 25.1% growth over the same quarter of last year.
SCI had put the quarterly and YOY "maintenance and repair services" inflation rates for the preceding quarter at 5.2% and 26.1%, respectively.
CPI for "maintenance and repair services" increased by 29.9% in the year ending March 19.
SCI had put annual maintenance and repair services inflation rate for the preceding quarter at 32%.
2-Month Extension of Homes Lease Agreements
Home lease with the termination date falling between Feb. 20 and May 20 will be entitled to a two-month extension due to the spread of coronavirus and closure of real-estate agencies, says Roads Minister Mohammad Eslami.
As approved by Iran's National Headquarters of Coronavirus Management, courts won’t penalize or enforce evictions amid the outbreak of coronavirus.
“Landlords and tenants have been advised to be flexible in their annulments by extending the lease contract and preventing relocations as far as possible to slow the spread of the virus,”Eslami was quoted as saying by Mehr News Agency.
Rise in Rents Won’t Outpace Inflation
Hesam Oqbaei, the deputy head of Tehran Realtors Association, says the rise in rent levels won’t match the average inflation of fiscal 2020-21.
“More than 37% of the population of urban areas don’t own the home they live in and are usually government employees from low- and middle-income households. Their pay rise this year was 22%, which makes it impossible for them to afford higher rent increases),” he was quoted as saying by IRNA.
“Last year, we saw home prices rise by up to 100% and rents by 30%; rent increases higher than the average inflation rate are not on the cards, at least for the first half of the current year (March 20-Sept. 21).”
According to CBI's latest report, the price of rented residential units in Tehran and across all urban areas increased by 28.7% and 31% respectively during the first month of the current year (March 20-April 19) compared with the similar month of last year.
The average goods and services Consumer Price Index in the 12-month period ending April 19 increased by 32.2% compared with the corresponding period of the year before, latest data released by the Statistical Center of Iran show.
SCI had put the average annual inflation rate for the preceding Iranian month, which ended on March 19, at 34.8%.
The average annual inflation experienced a downtrend since the middle of last Iranian year (March 2019-20).
The consumer inflation for the month under review (March 20-April 19) registered a YOY increase of 19.8% compared with the similar month of the previous Iranian year.
The overall CPI (using the Iranian year to March 2017 as the base year) stood at 204.8 last month, indicating a 2.1% rise compared with the month before.
CPI registered a YOY increase of 20.2% for urban areas and 18.1% for rural areas in the month ending April 19.
The overall CPI reached 203.4 for urban households and 212.6 for rural households, indicating a month-on-month increase of 2% and 3.1% for urban and rural areas, respectively.
SCI put the average annual inflation for the month under review for urban and rural areas at 31.9% and 33.9% respectively.
