Economy, Business And Markets

Latest Report on Real Estate

Latest Report on Real Estate Latest Report on Real Estate

With the Iranian housing market having been in recession for two full years, new data show that housing deals are getting less affordable for people living in Tehran.

The average price of an apartment in the capital reached 38.9 million rials ($1,180 at market exchange rate) per square meter in the month to June 21, the central bank website said, citing the data released by Tenement Management Information System. The figure shows a 3% fall year-on-year.

Real-estate experts believe Tehran has great potential for housing deals and if its market remains in recession, thousands of jobs would be gone.

Housing can feed about 100 downstream industries if it gets back on track, both housing officials and experts say.

According to the report, the number of housing units sold in the third month of spring this year dropped to 15,661 from 17,303 in the same month of last year, showing a 9.5% fall.

The negative effects of the housing developments have also reached the rental market. The average rent in Tehran fell 13.3 year-on-year in the month to June 21.

Renting contracts in Iran are for one year. So, the annual inflation rate and fluctuations of home prices affect the rent. If inflation, which is hovering at 15 percent, is curbed further, the home rental market would become more stable.

It is expected that home rental reports in the coming months will show further increase in rents, as the market usually sees a rise in rents during summer time, when schools are closed and families move to new places.

Housing costs account for 28.4% of consumer-price basket in big cities like Tehran, according to available statistics.