Domestic Economy
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Sales Drop as Prices Stabilize

Average home prices grew by 18.4% over last year’s same month, but declined by 0.2% compared to the previous month. The number of home deals declined by 29.8% compared with the preceding month and fell 36.8% compared with the same month of last year
Sales Drop as Prices Stabilize
Sales Drop as Prices Stabilize

New data released by the Central Bank of Iran show sales in Tehran’s real-estate market have declined in the seventh fiscal month (Sept. 23-Oct. 22), as prices remained stable. 
A total of 5,471 homes were sold in Tehran during the month, registering a decrease of 29.8% compared with the preceding month and a 36.8% fall 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 316.31 million rials ($1,146) during the month under review, showing a surge of 18.4% over last year’s same month, when average prices reached 267.2 million rials ($968). 
Home prices in the capital city decline by 0.2% compared to 317.03 million rials ($1,149) in the sixth month of the current year. 

 

 

Details of Property Deals

The CBI data also show that during the month ending Oct. 22, newly-built residential properties up to five years old constituted the highest proportion of deals at 33% (or 1,805 deals), down by 36.8 percentage points compared with the same month of last year. 
Thet 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 21.8%, 13.8%, 18.4% and 13.1% of total deals compared with the same month of last year’s 18.1%, 13%, 19% and 12.8%, respectively. 
The distribution of dealt properties shows that among Tehran’s 22 districts, District 5 grabbed the highest share of total deals at 14.5%. It was followed by districts two and 10 with a share of 9.9% and 9.2%, 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 73.7% with the remaining 12 districts holding a 26.3% share.
Among Tehran's 22 districts, District 1 registered the highest average home price of 696.7 million rials ($2,526) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 151.4 million rials ($548). The aforesaid numbers show a respective increase of 22.5% and 21.9% YOY.
Residential units with an average price range of 150 million rials ($543) to 200 million rials ($725) per square meter were the most popular in Tehran during the Iranian month under review, as they accounted for 17% of all deals. They were followed by units priced at 200 million rials to 250 million rials ($906) per square meter with a share of 15.9% and homes priced at 250 million rials to 300 million rials ($1,087) per square meter with a share of 12.1%.  
From the total number of deals, 60% belonged to homes cheaper than the average per-square meter price of the city (i.e., 316.3 million rials=1,146). 
Residential units with a floor area of 50-60 square meters registered the highest number of sales with a 16% share of total deals.  
Units with an area of 60-70 and 70-80 square meters ranked second and third with a respective share of 14.2% and 13.6%. All-in-all, residential properties with an area of less than 80 square meters had a 57.4% share of total deals. 

 

 

High-Demand Homes and Tenancy

The data indicate that Tehran’s homes worth between 10 billion rials ($36,258) and 15 billion rials ($54,387) were the most popular with a 19.3% share of total deals. These were followed by homes with a price tag of between 5 billion rials ($18,129) and 10 billion rials, as well as those priced at 15 billion rials to 20 billion rials ($72,516) with a respective share of 16.9% and 11.5% of total deals. 
Collectively, homes valued under 20 billion rials had a 49.5% share of total home deals in Tehran during the sixth month of the current year.  
The central regulator also reported changes in tenancy prices in the capital city and across urban areas. 
According to CBI, the price of rented residential units in Tehran and across urban areas increased by 48.4% and 51.3% respectively during the seventh month of the current Iranian year compared with the corresponding month of last year.
 

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