The Statistical Center of Iran has published its latest report on home and land prices as well as rents in the capital city Tehran during the fourth quarter of the last Iranian year (Dec. 22, 2019-March 19), the winter season of fiscal 2019-20.
According to the report published on the SCI website, 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 Tehran went up by 43.1% during Q4 compared with the corresponding period of the year before. Prices increased by 11.1% compared with the preceding quarter (Q3 of the last Iranian year.)
The minimum price of each square meter of land or land of a rundown property in the capital city stood at 26.48 million rials ($150) while the maximum was at 750 million rials ($4,249), bringing the average to 208.15 million rials ($1,179).
The number of land deals made during the last Iranian year’s Q4 decreased by 10.3% compared with the similar period of the year before but increased 37.2% when compared with the third quarter of last year.
The average area of each dealt land or land of a rundown property in real-estate agencies across Tehran was reported at 235 square meters by SCI.
The report put the average dealt floor area at 88 square meters while putting the average age of residential units at 11 years.
Average Prices
The report also shows the average price of each square meter of residential floor area in the capital city surged by 43.7% in Q4 on a year-on-year basis. When compared with the previous quarter, prices indicated a growth of 12.7%.
The minimum price of each square meter of residential floor area across urban areas during Q4 stood at 22.56 million rials ($127) with the maximum price registered at about 714.25 million rials ($4,046). The average price was about 153.34 million rials ($868).
In terms of the number of deals for residential floor areas, last year’s Q4 saw a rise of 12.8% compared with the Q4 of the year before. Against Q3, the number of such deals registered an increase of 87.7%.
SCI also disclosed figures for monthly home rents plus 3% collateral legally paid to rent 1 square meter of residential floor area.
It reported that the average rent prices increased by 47.9% during last year’s Q4 compared with the Q4 of the year before while they grew by 14.9% compared with the third quarter of last year.
The minimum price of each square meter of residential floor area rented in Tehran stood at 36,000 rials (20 cents) with the maximum registered at 2.7 million ($15) bringing the average to 507,465 rials ($2.8) per month.
Compared with the fourth quarter of the year before, last year’s Q4 rent deals decreased by 48.7%; they decreased by 50.4% compared with the preceding quarter.
SCI reported the average area of total rent deals at 84 square meters and put the average age of rental homes at 14 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 legally requires all certified real-estate agencies to register their deals.
As 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.
