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Housing Market May Enter Positive Territory

Housing Market May Enter Positive TerritoryHousing Market May Enter Positive Territory

Data released by the Central Bank of Iran implies a change of fortunes in the unimpressive housing industry.

Average price per square meter of housing units grew despite decline in real estate transactions in the sixth month of the current Iranian year (August 23 – September 22), according to the report released by the CBI on Sunday.  

The average price per square meter of a housing unit during the review period grew by 1.5% compared to the previous month rising to 39 million rials ($1,300). This was a 2% decline compared to the similar period last year. A rise in prices could auger well for the housing market, which has been hit by long periods of stagnation and dwindling sales.

In Tehran, the number of traded residential units declined by 1.6% compared with the previous month reaching 12,900. The figure also shows a 15.5% decline month-on-month.

Among the 22 districts in the capital, districts three and 18 registered the highest and lowest average price per square meter at 77 million rials and 2 million rials, the report said.

The housing rental index in Tehran city also increased by 11.1% compared to the previous month. The figure showed a 12% increase year-on-year.

According to the data, housing sales in the first half of the current Iranian year (started March 21) fell by 2% compared to the similar period last year.

The CBI attributed the decline partly to the marathon nuclear negotiations at the time which discouraged both sellers and buyers from making decisions.

The nuclear deal between Iran and the world powers in July together with the recent decisions by the Money and Credit Council that boosts lending to home buyers are expected to inject some life into the key housing market in the coming month, the CBI report indicated. 

Financialtribune.com