The Statistical Center of Iran has published its latest report on the state of home and land prices, in addition to rents, suggesting that all have increased significantly across urban areas in the country during the second quarter of the current fiscal year (June 22-Sept. 22).
Land Prices, Deals
According to the report published on the SCI website, the average price of each square meter of land (vacant) or land of a rundown residential property (old residential units that are only considered useful for reconstruction) in Iran's urban areas went up by 49.2% during Q2 compared with last year's corresponding period. Prices increased by 29% compared with the current fiscal year’s Q1.
The minimum price of each square meter of land, including that of a rundown property stood at 400,000 rials ($3.92) while the maximum was at 314.7 million rials ($3,085), bringing the average to 17.25 million rials ($169.11).
The number of land deals made in summer increased by 41.9% compared with the similar period of last year and by 11.1% when compared with the first quarter of this year.
The average area of each dealt land or land of a rundown property in real estate agencies across urban areas was reported at 307 square meters by SCI.
Home Prices, Deals
According to the report, the average price of each square meter of residential floor area surged by 44.4% in Q2 on a year-on-year basis. When compared to the previous quarter, prices indicated a growth of 14.9%.
The minimum price of each square meter of residential floor area across urban areas in summer stood at 865,000 rials ($8.48) with the maximum price registered at 380.8 million rials ($3,733). The average price was 22.26 million rials ($218).
In terms of the number of deals for residential floor areas, the current year's Q2 saw a rise of 15.8% compared with last year's corresponding period. Against the Q1 of this year, the number of the deals registered a rise of 11.3%.
SCI put the average dealt floor area at 106 square meters while putting the average age of residential units at 11 years.
Rent Prices, Deals
The Statistical Center of Iran has also released figures on home rents plus 3% collateral legally paid to rent one square meter of residential floor area.
The average rent prices increased by 26% during the period under review compared with the Q2 of last year while they grew by 10.3% compared with the first quarter of this year.
The minimum cost of each square meter of residential floor area rented in Iran's urban areas stood at 1,818 rials ($0.01) with the maximum registered at 1.46 million rials ($14.31), bringing the average to 108,096 rials ($1.05) per month.
Compared with the second quarter of last year, this year's second quarter rent deals decreased by 9.8% whereas they increased by 37.5% compared with the first quarter of this year.
SCI reported the average area of total rent deals at 97 square meters and put the average age of dealt units 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.
Since sudden changes in the number of deals in major cities led 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.
