The latest data on Tehran’s housing market released by the Central Bank of Iran show prices are stabilizing as sales decline.
During the 11th fiscal month (Jan. 21-Feb. 19), a total of 8,532 homes were sold in the capital city, registering a decrease of 13.1% compared with the preceding month and a 117.8% jump compared with the same month of last year.
The CBI data also show that the average price of each square meter of a residential property in Tehran stood at 330.56 million rials ($1,273) during the month under review, showing a surge of 16.4% over last year’s same month, when average prices stood at 283.89 million rials ($1,093).
Home prices in the capital city increased by 0.4% compared to 329.36 million rials ($1,269) in the 11th month of the current year.
During the month ending Feb. 19, residential properties up to five years old constituted the biggest proportion of deals at 33.6% (or 2,871 deals), down by 5.8 percentage points compared with the same month of last year.
The lost share was added to homes with a lifespan of six to 10 years, 11 to 15 years, 16 to 20 years and over 20 years. They accounted for 20.6%, 13.8%, 18.1% and 13.9% of total deals compared with the same month of last year’s 17.5%, 14.4%, 16.1% and 12.6% respectively.
The distribution of dealt properties indicates that among Tehran’s 22 districts, District 5 grabbed the biggest share of total deals at 14.8%, which was followed by districts 10 and 4 with a share of 10% and 8.5%, respectively.
All-in-all, 10 districts (5, 10, 2, 4, 14, 7, 8, 1, 15 and 11) grabbed the lion's share of deals at 73.4%, with the remaining 12 districts holding a 26.6% share.
Among Tehran's 22 districts, District 1 registered the highest average home price of 702.6 million rials ($2,707) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 156.7 million rials ($603.85). The aforesaid figures show a respective increase of 17.3% and 30.7% YOY.
Residential units with an average price range of 200 million rials ($770) to 250 million rials ($963) per square meter were the most popular in Tehran during the Iranian month under review, as they accounted for 16.1% of all deals. They were followed by units priced at 150 million rials ($578) to 200 million rials per square meter with a share of 15.7% and homes priced at 250 million rials to 300 million rials ($1,156) per square meter with a share of 13.9%.
From the total number of deals, 59.9% belonged to homes cheaper than the average per-square meter price of the city (i.e., 330.6 million rials or $1,273).
Residential units with a floor area of 60-70 square meters registered the highest number of sales with a 15.4% share of total deals.
Units with an area of 50-60 and 70-80 square meters ranked second and third with a respective share of 15.3% and 13.3%. All-in-all, residential properties with an area of under 80 square meters had a 57.4% share of total deals.
The data indicate that Tehran’s homes worth between 10 billion rials ($38,535) and 15 billion rials ($57,803) were the most popular with a share of 19.1% from the total deals. These were followed by homes with a price tag of between 5 billion rials ($19,267) and 10 billion rials, as well as those priced at 15 billion rials to 20 billion rials ($77,071) with a respective share of 14% and 12.7% of total deals.
Collectively, homes valued under 20 billion rials had a 46.7% share of total home deals in Tehran during the 11th 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, prices of rented residential units in Tehran and across urban areas increased by 48.4% and 52.2% respectively during the 11th fiscal month compared with the corresponding month of last year.
