Economy, Business And Markets

Higher Housing Prices Expected in Winter

Higher Housing Prices Expected in WinterHigher Housing Prices Expected in Winter

Managing Director of Tehran Builders’ Association seems to be looking more on the plus sides of his business and says housing prices will increase in winter.

Hassan Mohtasham referred to the Ministry of Roads and Urban Development’s stimulating policies on Wednesday and said, “The market is  recovering slowly as people are showing interest in the incentives offered by the ministry for buying small and low-priced houses,” ISNA quoted him as saying.

Mohtasham believes that much, if not all, of the indices related to the housing market are the result of seasonal changes in demand patterns -- for instance demand usually on the upside in summer.

“A meager 7-8% uptick in the market that was seen this summer is simply not enough to compensate for the prolonged recession.”

Rejecting claims that builders are intentionally keeping prices high, he said “it is not feasible for any housing constructor to sell at a price lower than the cost.  A constructor pays for the land, taxes, workers and building materials.”