The Statistical Center of Iran has published a new report on home and land prices, as well as rent levels, in the country’s urban areas during the fourth quarter of last Iranian year (Dec. 21-March 20, 2021).
According to a report published on the website of SCI, 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 Iranian cities went up by 98.8% in Q4 compared with the corresponding period of the year before. Prices increased by 6.2% 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 1 million rials ($3.71) while the maximum was 1.67 billion rials ($6,196), bringing the average to 93.1 million rials ($345).
The number of land deals during the last Iranian year’s Q4 declined by 24.4% compared with the similar period of the year before and dropped by 17.6% 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 Iranian cities was reportedly 374 square meters.
The SCI report also shows the average price of each square meter of residential floor area in urban areas surged by 98.9% in Q4 on a year-on-year basis. Compared with the previous quarter, prices saw a growth of 6.2%.
The minimum price of each square meter of residential floor area across urban areas during the fourth quarter stood at 1 million rials ($3.71) while the maximum price reached 1.68 billion rials ($6,233), hence the average price was 102.5 million rials ($380).
In terms of the number of deals for residential floor areas, last year’s Q4 saw a decline of 53.1% compared with Q4 of the year before. Against Q3 of last year, the number of home deals registered a decline of 27.6%.
SCI put the average dealt floor area at 120 square meters while putting the average age of residential units at 12 years.
In view of the decline in the number of sales, the significant increase in prices of land and property during the period under review is indicative of the slump in Iran’s housing market.
SCI also disclosed figures for monthly home rents plus a 3% collateral legally paid to rent 1 square meter of residential floor area.
It reported that the average rent prices increased by 42.7% during last year’s Q4 compared with the Q4 of the year before and 9.8% compared with the third quarter of last year.
The minimum price of each square meter of residential floor area rented in the Iranian cities stood at 2,185 rials (about 1 cent) with the maximum being 6.05 million rials ($22.45), bringing the average to 229,920 rials (85 cents) per month.
Last year’s Q4 rent deals increased by 105.8% compared with the fourth quarter of the year before and decreased by 38.5% compared with the preceding quarter.
SCI reported the average area of total rent deals at 104 square meters and put the average age of rental homes 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 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 were based on occupied residential units surveyed during a general census conducted in the fiscal 2016-17.
