New data released by the Central Bank of Iran show Tehran’s real-estate market has rallied in the sixth fiscal month (Aug. 23-Sept. 22), as both the number of sales and prices were on a growth path.
A total of 7,789 homes were sold in Tehran during the month, registering an increase of 41.6% compared with the preceding month, but an 8% decrease compared with the same month of last year.
CBI’s data published on its website also indicate that the average price of each square meter of a residential property in Tehran stood at 317.03 million rials ($1,134.28) during the month under review, showing a surge of 30.5% over last year’s same month, when average prices reached 242.88 million rials ($868.98).
Home prices in the capital city grew by 2.4% compared to 309.7 million rials ($1,108.05) in the fifth month of the current year.
Details of Property Deals
The CBI data also show that during the month ending Sept. 22, newly-built residential properties up to five years old constituted the highest proportion of deals at 33% (or 2,574 deals), down by 20 percentage points compared with the same month of last year.
That lost share was added to homes with a lifespan of six to 10 years, 11 to 15 years, 16 to 20 years and above 20 years. They accounted for 22.5%, 14.1%, 17.8% and 12.9% of total deals compared with the same month of last year’s 18.3%, 13.6%, 17.4% and 12.7%, respectively.
The distribution of dealt properties shows that among Tehran’s 22 districts, District 5 grabbed the highest share of total deals at 14.2%. It was followed by districts 10 and two with a share of 10% and 8.7%, respectively.
All-in-all, 10 districts (5, 10, 2, 4, 14, 7, 8, 1, 15 and 11) grabbed the lion's share of the deals at 72.6% with the remaining 12 districts holding a 27.4% share.
Among Tehran's 22 districts, District 1 registered the highest average home price of 689.1 million rials ($2,565.47) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 150.3 million rials ($537.75). The aforesaid numbers show a respective increase of 35.7% and 44.3% YOY.
Residential units with an average price range of 150 million rials ($536.62) to 200 million rials ($715.56) per square meter were the most popular in Tehran during the Iranian month under review, as they accounted for 16.3% of all deals. They were followed by units priced at 200 million rials to 250 million rials ($894.45) per square meter with a share of 16% and homes priced at 250 million rials to 300 million rials ($1,073.35) per square meter with a share of 12.9%.
From the total number of deals, 59.4% belonged to homes cheaper than the average per-square meter price of the city (i.e., 317 million rials).
Residential units with a floor area of 60-70 square meters registered the highest number of sales with a 15.1% share of total deals.
Units with an area of 50-60 and 70-80 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 less than 80 square meters, had a 56.3% share of total deals.
The data indicate that Tehran’s homes worth between 10 billion rials ($35,778.18) and 15 billion rials ($53,667.26) were the most popular with a 18.2% share of total deals. These were followed by homes with a price tag of between 5 billion rials ($17,889.09) and 10 billion rials, as well as those priced at 15 billion rials to 20 billion rials ($71,556.35) with a respective share of 17.6% and 12.6% of total deals.
Collectively, homes valued under 20 billion rials had a 50.1% share of total home deals in Tehran during the sixth month of the current year.
Tenancy in Urban Areas
The central regulator also reported changes in tenancy prices in the capital city and across the urban areas.
According to CBI, the price of rented residential units in Tehran and across urban areas increased by 42.8% and 45.7% respectively during the sixth month of the current Iranian year compared with the corresponding month of last year.
