Economy, Domestic Economy

Modest Increase Anticipated in Housing Prices

Modest Increase Anticipated in Housing PricesModest Increase Anticipated in Housing Prices

The increase in housing prices will be less than the inflation rate in the current Iranian calendar year (started March 21), said the head of Tehran’s real estate union, stressing the need to avoid overexcitement due to the ongoing political atmosphere.

Hesam Oghabayi referred to the impact of the recent nuclear breakthrough and said: “Considerable short-term effects on the housing market are out of the question. Changes are expected to be seen by summer.”

The official expressed hope that improvement in the housing market in the new Iranian calendar year will help the market step out of recession, stressing that the inflation rate is unlikely to increase.

Increase in prices will lead to further recession and thus reduction in transactions, said Oghabayi, who also noted that if this increase is to happen as a result of growth in investments in other sectors such as gold and foreign exchange, it will not be until summer.

Meanwhile, a report by the Statistical Center of Iran (SCI) shows a 53.9% decline in the number of residential construction permits issued by Tehran Municipality during the first half of the Iranian calendar year 1393 (March 21-September 22, 2014). The SCI report also indicates a 57.9% decline in construction permits issued across the country during the six-month period, IRNA reported on Monday.