Need for Bigger Home Loans as Prices Soar

The value of home loans has not increased in line with recent skyrocketing prices, drastically eroding the purchasing power of Iranians and contributing to a downturn in housing sales.
"Loans offered in the housing sector used to cover 50% of the final price of the homes on sale in the past, but they are now barely enough to cover 25% of the price, particularly in metropolises," Mohammad Reza Rezaei, the head of Majlis Development Commission, told IBENA on Wednesday.
"In view of the rapidly rising bubble in the real-estate sector, the government loans are not worth much in terms of the whole price of homes," he added.
Trading in the property market has substantially slowed since the onset of the inflationary trend.