Bank Maskan, the state agent bank of Iran’s housing sector, paid 112,160 billion rials ($430 million) in construction and home loans during the eight months to Nov. 20.
According to Mahmoud Shayan, Bank Maskan’s managing director, of the total sum, 16,288 counts of loans worth 38,820 billion rials ($149.3 million) were paid to builders and 73,255 counts of loans worth 73,340 billion rials ($282.07 million) were doled out to home buyers.
Noting that the number of home deals in Tehran declined by 48% during the month ending Nov. 20 compared with the preceding month, the official said, “The data on the real-estate market for the third quarter of the current fiscal year [Sept. 22-Dec. 20] has yet to be published. However, there is evidence that home deals were on the decline in other cities as well. The month-on-month decline in Bank Maskan facilities for home purchases was only 22% in the month ending Nov. 20, which shows that a large number of people rely on the bank’s loans to purchase a home.”
“Last month [Sep. 22-Oct. 21], Bank Maskan paid more than 70 billion rials [$269,230] from the resources of Housing Saving Account mortgage initiative to home construction applicants. In addition, a total of 1,760 first-time home buyers took out loans worth 2,400 billion rials [$9.23 million] under HSA in the month ending Nov. 20,” he was quoted as saying by Hibna.
HSA scheme requires applicants to make an initial deposit (400 million rials or $1,538) and wait out the one-year maturity period for credits with a ceiling of 800 million rials ($3,076), plus the depositor’s down payment, in the capital Tehran. In towns with a population of over 200,000, the cap on the loans is at 600 million rials ($2,307). Buyers in towns with a population of under 200,000 can apply for a maximum 400 million rials ($1,538).
The Central Bank of Iran recently accepted Bank Maskan’s proposal on amending one of the requirements concerning Housing Saving Account mortgage loan, according to Mohammad Hassan Moradi, a senior official with Bank Maskan.
“Prospective homebuyers can now take out loans on homes older than 20 years. Previously, HSA loans were only paid for new homes that are 15 years old or lower. This will improve the purchasing power of loan applicants, thanks to the higher number of homes older than 20 and their relatively cheaper prices,” he was quoted as saying by Mehr News Agency.
The official noted that the date the construction permit of a property was issued—and not the date on which the construction project was completed—serves as the criterion by which the loans will be granted.
Average Home Price Put at $584 per sqm
The average price of each square meter of a residential property in Iran stood at 152 million rials ($584) in the month ending Nov. 20, says Mahmoud Mahmoudzadeh, the head of the Housing Department of the Ministry of Roads and Urban Development.
“In summer, the department decided to stop publishing statistics regarding the real-estate market in Tehran because having the average home price in Tehran as a reference affects prices in other provinces whereas prices in the cities of a province should be compared to the capital city of that province [and not Tehran],” he said.
“At present, statistics on home deals of all provincial capital cities have been prepared; the average price of each square meter of a residential property in 25 provincial capital cities is below 100 million rials ($384). The median home price of nine provincial capital cities is less than 50 million rials ($192) and only in Tehran and Ahvaz, the average price of each square meter of home exceeds 200 million rials ($769). Tehran home prices stood at 278 million rials ($1,069) and Ahvaz at 235 million rials ($903) per square meter during the month ending Nov. 20.”
Mahmoudzadeh noted that high demand has driven up home prices in the southern city of Ahvaz, as it has become popular with foreign national buyers in recent months.
The most expensive city in Iran, given the home prices, is Tehran and the cheapest is Yasuj with 32 million rials ($123) per square meter last month.
He put the median home price per square meter in Shiraz at 114 million rials ($438); Isfahan at 111 million rials ($426); Ilam at 40 million rials ($153); Birjand at 42 million rials ($161); Bojnurd at 45 million rials ($173); Kermanshah at 46 million rials ($177); and Arak and Zanjan at above 100 million rials ($384).
On home prices in Tehran in dollar term, the official said, “The highest average home price in dollar term in Tehran over the past 15 years was registered in the year ending March 2009 with $2,244 per square meter. This is while the average price of each square meter of a residential property in Tehran stood at $1,051 at the rate of 250,000 rials per US dollar last month, i.e., half the price that prevailed in the year ending March 2009.”
Noting that housing expenses accounted for 36% of households’ budget in the year ending March 2020, Mahmoudzadeh said, “Home prices increased from 12 million rials [$46] in the year ending March 2010 to 278 million rials last month.”
CBI Report
Latest data published by the Central Bank of Iran show a total of 4,466 homes were sold in the capital during the eighth month of the current fiscal year (Oct. 22-Nov. 20), registering a 48.4% decline compared with the preceding month but a 9.9% growth compared with the same month of last year.
The average price of each square meter of a residential property in Tehran stood at 271.93 million rials ($1,045) during the month under review, showing a surge of 118.2% over last year’s same month as average prices were registered at 124.63 million rials (about $480) then.
Home prices in the capital city increased by 1.8% compared to 267.2 million rials ($1,027) in the seventh month of the current year.
During the first eight months of the current Iranian year that started on March 20, the number of home deals finalized in Tehran totaled 68,043, which shows a 70.7% rise year-on-year.
In the same period, the average price of each square meter of a home in the capital stood at 216.79 million rials ($833), signaling a YOY surge of 70.9% compared with the eight months of last year.
The central regulator also reports changes to 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 28.7% and 31.9% respectively during the eighth month of the current year compared with the similar month of last year.
