The general price index of construction materials for residential properties in Tehran, using 2011 as the base year, grew by 36.7% during the four-quarter period ending Sept. 22, which marks the end of the second quarter of the current Iranian year, compared with the previous year's corresponding period.
The annual inflation of construction material was 44.8% in Q1.
The general index stood at 1,491 in Q2 (June 22-Sept. 22), according to the Statistical Center of Iran's latest report published on its website. Compared with the previous quarter, which ended on June 21, the index registered a 3.4% fall.
In the first quarter of the current Iranian year (March 21-June 21), the construction material price index stood at 1,544.2 and registered a 26.3% quarter-on-quarter growth.
The index rose by 29.3% in Q2 compared with last year's corresponding quarter (year-on-year). In Q1, the year-on-year index growth was 43.4%.
Compared with the previous quarter, the category of “building painting” registered the highest growth among all categories of construction materials with a growth of 9.9%. This is while “cement, sand and gravel” index declined by 15.4% compared with the preceding quarter.
“Glass” witnessed the highest year-on-year inflation with 83.3% while “ironware, rebar, profile for doors, windows and fences” category declined by 0.4% year-on-year.
The highest annualized price hike was registered for “glass” with 85.2% as the lowest was posted for “ironware, rebar, profile for doors, windows and fences” group with 18%.
Compared with the previous quarter, which ended on June 21, the index registered a 3.4% decline
SCI earlier reported that the average price of each square meter of residential floor area in urban areas surged by 58.4% in Q2 on a year-on-year basis. Compared with the previous quarter, prices saw a rise of 6.4%.
In terms of the number of residential deals, last year’s Q2 saw a decline of 27.6% compared with Q2 of the year before. Against Q1, the number of home deals registered a growth of 41.6%.
SCI put the average dealt floor area in Q2 at 113 square meters while putting the average age of residential units at 12 years.
The center also reported that the average rent prices increased by 58.8% during the period compared with the Q2 of the year before and 9.4% compared with the first quarter of last year.
The minimum price of each square meter of residential floor area rented in the Iranian cities stood at 5,500 rials (about 2 cent) with the maximum being 6.71 million rials ($23.93), bringing the average to 308,426 rials ($1.1) per month.
The number of rent deals increased by 202.8% compared with the second quarter of the year before and increased by 369.2% compared with the preceding quarter.
The SCI put the average area of total rent deals at 104 square meters and the average age of rental homes at 14 years.
According to the same report, 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 46.1% in Q2 compared with the corresponding period of the year before. Prices increased by 3.9% compared with the preceding quarter (Q1).
The number of land deals in Q2 declined by 67.7% compared with the similar period of the year before and decreased by 22.2% when compared with the first quarter.
The average area of each dealt land or land of a rundown property in real-estate agencies across Iranian cities was reportedly 258 square meters.
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.
