Data released by the Iran Chamber of Cooperatives on Purchasing Managers’ Index for the construction sector shows it remains in contraction mode.
Construction PMI settled at 40.95 in the ninth month of the current Iranian year (Nov. 22-Dec. 21), up from 45.78 in the preceding month (Oct. 23-Nov. 21), which indicates a 10.55% decrease.
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 surveyed, 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 40.95 in the month ending Dec. 21, indicating 6.25% decline compared with 43.68 in the month ending Nov. 21.
The "Supplier Deliveries" sub-index, which measures how fast deliveries are made, increased by 31.01% from 42.63 in the month ending Nov. 21 to 55.85 in the month ending Dec. 21.
The "Raw Materials (construction materials) Inventory" sub-index increased by 8.27% from 44.21 in the month ending Nov. 21 to 47.87 in the month ending Dec. 21.
The "Employment" sub-index grew by 7.64% from 48.42 in the month ending Nov. 21 to 52.12 in the month ending Dec. 21.
To calculate housing PMI, seven secondary criteria were also surveyed by ICC, including "raw material purchase prices", which stood at 68.42 in the month ending Nov. 21. The sub-index increased by 22.82% to stand at 84.04 in the month ending Dec. 21.
"Warehouse Inventory" increased by 10.37% to reach 50.53 in the ninth Iranian month from 45.78 in the eighth month.
The "Exports" sub-index settled at 50.53 in the month ending Dec. 21 from 47.89 in the month ending Nov. 21, registering a 5.51% increase.
"Prices of Products and Services" increased by 15.03% to stand at 74.46 in the month ending Dec. 21 from 64.73 in the previous month.
"Fuel Consumption" increased by 18.96% from 50.52 in the eighth month of the current fiscal year to 60.1 in the ninth fiscal month.
"Sales" declined from 52.63 in the eighth fiscal month to 45.21 in the ninth month to register a 14.09% decrease.
The sub-index of "Performance Expectations for the Following Month" settled at 48.4 in the month ending Dec. 21 from 42.63 in the previous month, showing a 13.53% increase.
CBI, SCI on Tehran Real Estate
The Central Bank of Iran’s data on Tehran’s housing market show a total of 10,184 homes were sold in the capital city during the ninth month of the current Iranian year (Nov. 22-Dec. 21), registering a 27.2% rise compared to the previous month and a 4.2% increase compared with the corresponding month of the previous year.
Home prices in the capital city increased by 2.9% compared with 467.04 million rials ($1,141) in the eighth month of the year, CBI’s website reported.
According to the report, residential properties up to five years old constituted the biggest proportion of homes sold (2,955), which accounted for 29% of total sales, down by 4.2 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 16.7% and 20.2% of total deals compared with the same month of last year’s 14.2% and 13.2% respectively.
The distribution of sold properties indicates that among Tehran’s 22 districts, District 5 grabbed the biggest share of total sales with 15%, followed by District 10 with 9.4% and District 2 with 9.3%.
All-in-all, 10 districts (5, 10, 2, 4, 14, 7, 8, 1, 15 and 11) grabbed the lion's share of sales with 73.2%, with the remaining 12 districts holding a 26.8% share.
Among Tehran's 22 districts, District 1 registered the highest average home price of 944.1 million rials ($2,308) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 244.9 million rials ($596). The aforesaid figures show a respective increase of 30.7% and 59% YOY.
Residential units with an average price range of 300 million rials ($733) to 350 million rials ($855) 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 350 million rials to 400 million rials ($977) per square meter with a share of 10.5% and homes priced at 250 million rials ($611) to 300 million rials per square meter with a share of 10.3%.
From the total number of deals, 57.5% belonged to homes cheaper than the average per-square meter price of the city (i.e., 480.73 million rials, or $1,175).
Residential units with a floor area of 50-60 square meters registered the highest number of sales, taking a 15.3% share of the total.
Units with an area of 60-70 and 70-80 square meters ranked second and third with a respective share of 14.8% and 12.5%. All-in-all, residential properties with an area of under 80 square meters had a 56.6% share of total deals.
The data indicate Tehran’s homes worth between 15 billion rials and 20 billion rials ($48,899) were the most popular with a share of 13.6% of total deals. These were followed by homes with a price tag of between 10 billion rials ($24,449) and 15 billion rials ($36,674), as well as those priced at 20 billion rials to 25 billion rials ($61,124) with a respective share of 12.2% and 9.8% of total deals.
Collectively, homes valued under 30 billion rials ($73,349) had a 46.1% share of total home deals in Tehran during the ninth 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, residential rents in Tehran and across urban areas increased by 41.3% and 46.4% respectively during the month under review on a year-on-year basis.
According to the Statistical Center of Iran, the annualized inflation of residential buildings in Tehran reached 37.1% in the month ending Dec. 21.
Year-on-year and month-on-month inflation rates stood at 52.1% and 4.1% respectively.
The report puts the average price at 504.47 million rials ($1,233) per square meter, noting that among Tehran’s 22 districts, District 1 registered the highest average price of 1.07 billion rials ($2,616) while District 18 had the lowest rate of 256.39 million rials ($626) per square meter.
The SCI data also show a total of 9,508 residential homes were sold in the capital city Tehran during the ninth month of the current Iranian year (Nov. 22-Dec. 21), registering a 28.62% rise from 7,392 in the preceding month.
District 5 saw the highest number of sales with 1,454, while District 19 had the lowest with 96.
