Economy, Domestic Economy

Housing Market Boom by Yearend

Housing Market Boom by YearendHousing Market Boom by Yearend

The housing market will gradually experience a boom by the end of the current Iranian year (March 19, 2016), says managing director of Roads and Urban Development Organization in Tehran Province, Fariborz Vahedi.

According to the official, the average price of homes in Tehran is between 40 and 42 million rials per square meter. “There will be no increase in prices as well as rents by the end of summer,” he added. Vahedi hoped that increasing mortgage rates can help the housing market get out of the current recession. He stressed that the injection of more investment into the construction sector, which has been grappling with an unprecedented downturn since two years ago, will create a boom in the market, generate more jobs and help restore price stability.  

Last Iranian year (ended March 20), fewer construction permits were issued in Tehran, suggesting the constructors’ reluctance to build new houses due to low demand in the market.

According to Vahedi, there are more than 350,000 empty dwellings in the capital, most of which are new homes with no customers.

He called for closer cooperation between the Central Bank of Iran and the Ministry of Roads and Urban Development to grant financial resources to mass constructors to help them provide less expensive homes for low-income citizens.