After a tumultuous second Iranian month, Tehran's housing market became calmer in the third month that ended on June 21 in terms of home deals, but registered a whopping 45% annual growth in terms of prices.
According to the latest report published by the Central Bank of Iran's official website on Wednesday, a total of 14,886 residential units were dealt by Tehran's registered real-estate agents, down by 22.1% and 3.1% compared with the previous month and the same month of the previous year respectively.
The price of each square meter of residential unit stood at 65.1 million rials ($1,529), up by 8.9% when compared with the second month of the current year. The annual price growth, however, was equal to a staggering 45.8%.
Iran's housing sector has recently come out of a years-long recession and is experiencing what many think to be a short period of boom that will exert heavy pressure on people aiming to purchase a house in the Tehran market.
The decline in the number of home deals in the third month is most probably due to lower speculative demand from those looking to make a quick profit. The second month saw 19,107 deals, up by 16.7% on a year-on-year basis, and a per-square meter price of 59.8 million rials ($1,405) that indicated an annual growth rate of 34.8%.
According to CBI, newly-built residential units with an age of up to five years again had the lion's share of the deals during the third month of the current year at 43.7%.
Units ranging from six to 10 years had a 16.3% share while homes of ages 11 to 15 years and 16 to 20 years each grabbed shares equal to 14.7% and 14.6% respectively.
The distribution of deals shows that among Tehran's 22 districts, District 5 had the highest share at 13.9% of all deals. At 71.6%, an overwhelming share of the deals was registered in 10 districts.
District 5 was again at the end of the spectrum in terms of price growth, as it registered a huge annual surge of 63.6%. The lowest price growth belonged to District 20 at 16.6%. The affluent northern District 1 retained its status as the priciest district in Tehran where the value of each square meter of a residential unit was registered at 141.8 million rials ($3,331).
At 29 million rials ($681), District 18 was the capital's cheapest region, marking a year-on-year hike of 43.5%.
CBI data show that in the third month of the current year, residential units with a price range of 30 million rials ($705) to 35 million rials ($822) per square meter had the highest single share of total deals at 7.9%.
Furthermore, 56.4% of all transacted units were priced lower than the average for the whole city. Homes with a floor area of 60 to 70 square meters were in highest demand, as they grabbed a 15% share of all the deals. All-in-all, homes with a floor area of lower than 80 square meters had a 54% share of the deals.
Home rents grew by 12.5% and 10.4% across Tehran and across all urban areas respectively during the third month of the current year.
From a three-month perspective, the number of residential deals in Tehran exceeded 39,000, indicating a rise of 5.2% compared with the first quarter of the previous year. In this period, the price of each square meter of a residential unit equaled 60.1 million rials ($1,412), showing a year-on-year jump of 36.8%.
