Economy, Business And Markets

Expo Seeks to Reenergize Property Market

Expo Seeks to Reenergize Property Market Expo Seeks to Reenergize Property Market

The Third International Real Estate and Property Exhibition opened in Tehran Tuesday, where builders are offering units on installment basis in 400 buildings, each with 1 to 100 housing units at discount.

“The housing market has been in recession in recent years and we hope this exposition will help boost the market,” said Hessam Oqbaei, head of Tehran’s Association of Realtors.

Shortage of demand in the housing market as well as the decline in purchasing power are builders’ main obstacles in selling their property, an so “we decided to make special offers to potential buyers,” quoted him as saying.

The housing market, a key sector in most countries, has been in recession after the boom ended in 2012. Government interventions, including raising the mortgage ceiling -- has so far failed to lift the sluggish market which is visibly oversupplied with unwanted homes, a good part of which comprise luxury homes and large apartments, especially in the upscale districts in the bigger cities.

“We have also been holding talks with banks for financing homebuyers,” the realtor said without elaboration. In recent years the banks, saddled with billions of dollars of soured assets and bad loans, have choked of credit to companies involved in a wide range of activities, namely construction.

More than 110 companies from 18 countries are participating in the event, including from the UAE, Turkey and China, according to the realtor. Participation in the exhibition by foreign companies has been linked to their investment in the country.

Evaluating the role and significance of the housing sector in the country’s economy, presenting investment proposals in the sector and attracting both domestic and foreign investments are the main objectives of the event. The expo is underway from February 23-26 at Tehran’s Permanent International Fairgrounds.