Economy, Business And Markets

CBI: Home Prices Down, Sales Up

CBI: Home Prices Down, Sales UpCBI: Home Prices Down, Sales Up

Central Bank of Iran data shows that home prices in Tehran dropped 2% during the one-month period from Oct. 23- Nov. 21 while sales picked up.

The bank’s latest “Trends in Tehran Real Estate Deals” report also predicts housing deals to pick up in the wake of Money and Credit Council’s recent stimulatory measures to help improve homebuyers’ purchasing power by raising the mortgage ceiling.

Average price of a square meter of a typical residential unit in Tehran reached 38.5 million rials ($1,288 at the official exchange rate) last month, marking a 1.9% drop compared to the previous month and a 2% decline at an annualized rate.

An estimated 12,100 houses were sold in the capital during the period, a 4.4% increase compared to the previous month and a 6.7% year-on-year growth.

But overall Tehran’s total number of home sales dropped by 16.1% since the beginning of the fiscal year (March 21), with 96,200 homes being sold during eight months.

The bank said 55.3% of the houses sold were built less than five years ago, a decline of 1.7% in the sales of newly-built units. Rents also increased 10.8% month-on-month and 11.9% at an annualized rate.