Latest data released by the Iran Chamber of Cooperatives on Purchasing Managers’ Index for the construction sector shows the index has bounced back above the threshold (50-mark).
The index settled at 51.11 in the fifth month of the current fiscal year (July 23-Aug. 22) up from 46.7 in the preceding month (June 22-July 22), indicating a 9.44% increase.
PMI is an indicator of the health of economic sectors and provides information about business conditions to decision-makers, analysts and purchasing managers.
Raw material inventory, employment conditions, new orders, supplier deliveries and export/production conditions are among the criteria quizzed, yielding a final score of between 1 and 100.
If a business scores 50, it means that no change has been perceived compared to the previous month, while scores higher or lower than 50 indicate that the business is expanding or contracting respectively.
The survey includes 12 business criteria and any changes, whether it be improving, no changes or deteriorating. It is measured through a monthly survey sent to senior executives of 100 companies active in the real-estate sector.
It is based on five major survey areas: "new orders" with a coefficient of 30%, "raw material inventory" (10%), "production" (25%), "supplier deliveries" (15%) and "employment" (20%).
The "new orders" sub-index stood at 51.66 in the month ending Aug. 22, indicating a 9.33% rise compared with 47.25 in the month ending July 22.
The "supplier deliveries" sub-index, which measures how fast deliveries are made, increased by 14.89% from 48.35 in the month ending July 22 to 55.55 in the month ending Aug. 22.
The "raw materials (construction materials) inventory" sub-index grew by 13.15% from 43.2 in the month ending July 22 to 48.88 in the month ending Aug. 22.
The "employment" sub-index increased by 4.34% from 51.64 in the month ending July 22 to 53.88 in the month ending Aug. 22.
To calculate housing PMI, seven secondary criteria were also surveyed by ICC, including "raw material purchase prices", which stood at 75.27 in the month ending July 22. The sub-index declined by 23.98% to stand at 57.22 in the month ending Aug. 22.
"Warehouse Inventory" increased by 36.71% to reach 53.33 in the fifth Iranian month from 39.01 in the fourth month.
The "exports" sub-index settled at 50.55 in the month ending Aug. 22 from 50 in the month ending July 22, registering a 1.1% increase.
"Prices of products and services" declined by 26.68% to stand at 52.77 in the month ending Aug. 22 from 52.77 in the previous month.
"Fuel consumption" decreased by 6.97% from 54.94 in the fourth month of the current fiscal year to 51.11 in the fifth fiscal month.
"Sales" increased by 11.22% from 43.95 in the fourth fiscal month to 48.88 in the fifth month.
The sub-index of "performance expectations for the following month" settled at 57.22 in the month ending Aug. 22 from 54.39 in the previous month, showing a 5.2% increase.
CBI on Tehran Real Estate
New data released by the Central Bank of Iran on Tehran’s housing market show a total of 7,825 homes were sold in the capital city during the fifth month of the current fiscal year (July 23-Aug. 22), registering a 24% decline compared to the previous month and a 42.3% rise compared with the corresponding month of the previous year.
The average price of each square meter of a residential property in Tehran stood at 427.29 million rials ($1,409) during the month under review, registering a 38% rise over the preceding year’s same month, when average prices stood at 309.7 million rials ($1,021).
Home prices in the capital city increased by 2.5% compared with 417.04 million rials ($1,375) in the fourth month of the current fiscal year.
During the month ending Aug. 22, residential properties up to five years old constituted the biggest proportion of deals at 28.9% (or 2,259 deals), down by 4.3 percentage points compared with the same month of last year.
The lost share was added to homes with a lifespan of 11-15 years and over 20 years. They accounted for 16.4% and 21.1% of total deals compared with the same month of last year’s 14.9% and 11.7% respectively.
The distribution of dealt properties indicates that among Tehran’s 22 districts, District 5 grabbed the biggest share of total deals at 15%, which was followed by District 2 with a share of 8.9% as well as District 4 with a share of 8.8%.
All-in-all, 10 districts (5, 10, 2, 4, 14, 7, 8, 1, 15 and 11) grabbed the lion's share of deals at 72.7%, with the remaining 12 districts holding a 27.3% share.
Among Tehran's 22 districts, District 1 registered the highest average home price of 805.4 million rials ($2,656) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 200.8 million rials ($662). The aforesaid figures show a respective increase of 24.8% and 39.4% YOY.
Residential units with an average price range of 300 million rials to 350 million rials ($1,154) per square meter were the most popular in Tehran during the Iranian month under review, as they accounted for 11.6% of all deals. They were followed by units priced at 250 million rials ($824) to 300 million rials ($989) per square meter with a share of 11.5% and homes priced at 350 million rials ($1,154) to 400 million rials per square meter with a share of 10.3%.
From the total number of deals, 54.4% belonged to homes cheaper than the average per-square meter price of the city (i.e., 427.29 million rials, or $1,409).
Residential units with a floor area of 60-70 square meters registered the highest number of sales, with a 14.3% 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 13.8% and 11.6%. All-in-all, residential properties with an area of under 80 square meters had a 52.8% share of total deals.
The data indicate that Tehran’s homes worth between 10 billion rials ($32,981) and 15 billion rials ($49,472) were the most popular with a share of 13.8% of the total deals. These were followed by homes with a price tag of between 15 billion rials and 20 billion rials ($65,963), as well as those priced at 20 billion rials to 25 billion rials ($82,453) with a respective share of 12.1% and 9.4% of total deals.
Collectively, homes valued under 30 billion rials ($98,944) had a 49.1% share of total home deals in Tehran during the fifth 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 45.2% and 50.6% respectively during the fifth fiscal month year-on-year.
SCI’s account
The annualized inflation of residential buildings in Tehran, the capital city, stood at 28.4% in the fifth month of the current fiscal year (July 23-Aug. 22), according to a new report released by the Statistical Center of Iran.
Year-on-year and month-on-month inflation reached 44% and 1.8% respectively.
The center has put average price at 451.48 million rials ($1,489) per square meter, declaring that among the capital city’s 22 districts, District 1 registered the highest average price of 854.49 million rials ($2,818) while District 17 had the lowest rate of 222.68 million rials ($734) per square meter.
The SCI data also show a total of 6,852 residential properties were sold during the month under review across Tehran, down from 8,685 in the preceding month.
District 5 saw the highest number of housing deals with 1,121, while District 19 had the lowest figure with 42.
