Maskan Investment Group has proposed a new initiative to facilitate the purchase of homes through the capital market, says Rouzbeh Zahiri Hashemi, the group’s CEO.
“A housing project will be offered on the capital market; each square meter of which will be one investment unit. Applicants will be able to buy bonds that have a predetermined annual purchase limit. When the sum of bonds reach the minimum required area, investors will hand over the bond and receive their homes. Investors won’t be at a loss even if their bonds do not reach the minimum required area because the bond price will rise in parallel with the housing inflation,” he was quoted as saying by Hibna.
Noting that Baran Pardis Project, located in Tehran’s eastern satellite city Pardis, will be the first housing project to be implemented under the new initiative, the official said, “Required confirmations from specialized sharia committees have been received. We are yet to receive the final permit to launch the presale of housing units through standard parallel Salaf bonds.”
A standard parallel salaf is an Islamic contract similar to futures, with the difference being that the contract’s total price must be paid in advance.
Noting that the measure will help people buy a house amid exorbitant prices, Hashemi added that the execution of the proposal awaits the final approval of related bodies.
Data published by the Central Bank of Iran on its website also indicate that the average price of each square meter of a residential property in Tehran stood at 283.89 million rials ($1,108) during the 11th month of the current fiscal year (Jan. 20-Feb. 18), showing an increase of 97.2% over last year’s same month, as prices averaged at 143.97 million rials ($562) then.
Home prices in the capital city increased by 3.7% compared to 273.86 million rials ($1,069) in the 10th month of the current year.
Among Tehran's 22 districts, District 1 registered the highest average home price of 589.9 million rials ($2,304) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 119.9 million rials ($468). These figures show a respective increase of 110.1% and 67.5% YOY.
Residential units with an average price range of 160 million rials ($625) to 180 million rials ($703) per square meter were the most popular in Tehran during the Iranian month under review, as they grabbed a 7.5% share of all deals.
They were followed by units priced at 140 million rials ($546) to 160 million rials per square meter with a share of 6.8% and homes priced at 200-220 million rials ($781-859) per square meter with a share of 6.7%.
From the total number of deals, 61.3% belonged to homes cheaper than the average per-square meter price of the city (i.e., 283.9 million rials or $1,108).
Residential units with a floor area of 60-70 square meters registered the highest number of sales with a 15% share of total deals.
Units with an area of 50-60 square meters and 70-80 square meters were placed second and third with a share of 14.6% and 11.7%, respectively. All-in-all, residential properties with an area of less than 80 square meters had a 57.2% share of total deals.
CBI data further show that Tehran’s homes worth between 6 billion rials ($23,437) and 8.5 billion rials ($33,203) were the most popular with a 13.4% share of total deals. These were followed by homes with a price tag of between 8.5 billion rials and 11 billion rials ($42,968) and those priced at between 11 billion rials and 13.5 billion rials ($52,734) with a share of 10.1% and 8.3% of total deals respectively.
Collectively, homes valued under 18.5 billion rials ($72,265) had a 53.2% share of total home deals in Tehran during the 11th month of the current year.
A total of 3,917 homes were sold in Tehran during the month, registering an 11.4% increase compared with the preceding month, but a 70.5% decline compared with the same month of last year.
During the 11-month period of the current Iranian year (March 19, 2020- Feb. 18), the number of home deals finalized in Tehran totaled 78,030, which shows a 6.4% rise year-on-year.
In the same period, the average price of each square meter of a home in the capital stood at 232.83 million rials ($909), signaling a YOY surge of 78.9% compared with the similar period of last year.
