New Scheme to Assist Builders
Economy, Business And Markets

New Scheme to Assist Builders

The Central Bank of Iran has issued a directive enabling builders to sell their apartments in Tehran in installments with Bank Maskan as guarantor.
The scheme, jointly prepared by Maskan, builders and the Ministry of Roads and Urban Development, is mostly aimed at helping builders sell their new units with big built-in areas. The bank will serve as an intermediary only guaranteeing the payment of the installments by homebuyers in return for a commission.
One of the challenges builders in Tehran face is that demand for big units -- with built-in areas of 150 square meters and above -- is very low. These apartments account for 30% of the newly-built units in Tehran but only make up for 6.7% of the total sales.  
Builders have made the case that the payment period of installments will be short, maximum 2-3years.  They will charge some interest which will be added to the net price. The down payment is expected to be not more than 50% of the total price of a house.
Large sums of the banks’ credit and builders’ liquidity is locked in such unsold apartments and the new scheme could help unfreeze such money. This can in turn increase banks’ lending power and help the middle classes become homeowners. It can also improve the purchasing power of buyers of small and medium apartments.


Short URL : http://goo.gl/XL9FL5
  1. http://goo.gl/VYadta
  • http://goo.gl/ymyO42
  • http://goo.gl/40xHhC
  • http://goo.gl/tJNrPg
  • http://goo.gl/qZtg1y

You can also read ...

How China Became Iran’s Coziest Trade Partner?
From bilateral trade to finance contracts and civil projects,...
The economy of the Islamic Republic of Iran has been tied to political and foreign affairs developments over the years.
This is the Financial Tribune’s last edition of the current...
Iranian Banking Sector Awaits Full JCPOA Benefits
Iran’s Deputy Foreign Minister Abbas Araqchi addressed various...
President Hassan Rouhani on Sunday spoke to reporters after the last Cabinet meeting of the current year.
President Hassan Rouhani on Sunday outlined his administration...
All-Out Growth in Interbank Market
The Central Bank of Iran has released its latest data on the...
Iran has more than 37 billion tons of proven mineral reserves and 57 billion tons of potential reserves.
Iran exported more than 58.09 million tons of mineral products...