Home prices in Tehran have declined by 15% during the month ending Dec. 20, Mostafa Qoli-Khosravi, the head of Tehran Association of Realtors, said.
This is while, according to the latest report of the Central Bank of Iran on Sunday, prices in the capital city declined by 1.1% in the same month compared with the previous month, the Persian daily Shargh reported.
Over the nine months to Dec. 20, home deals in Tehran have increased by 72% year-on-year, Qoli-Khosravi added, noting this is because of market stability.
“Since March 20 to Dec. 12, a total of 236,669 home and rent deals have been signed in Tehran, indicating a 29% rise year-on-year.”
CBI’s figures, however, say the average price of each square meter of a residential property in Tehran stood at 269.05 million rials ($1,034) during the month under review, showing an increase of 98.9% over last year’s same month as average prices were registered at 135.25 million rials ($520) then.
Home prices in the capital city decreased by 1.1% compared to 271.93 million rials ($1,045) in the eighth month of the current year. A total of 2,555 homes were sold in the capital during the ninth month of the current fiscal year (Nov. 21-Dec. 20), registering a 42.8% and 73.2% decline compared with the preceding month and the same month of last year.
Mahmoud Mahmoudzadeh, the head of Housing Department of the Ministry of Roads and Urban Development, says the average price of each square meter of a residential property in Iran stood at 152 million rials ($584) in the month ending Nov. 20.
“In summer, the department decided to stop publishing statistics regarding the real-estate market in Tehran because it believes having the average home price in Tehran as a reference would affect prices in other provinces whereas prices in the cities of a province should be compared to the capital city of that province [and not Tehran],” he was quoted as saying by Mehr News Agency.
“At present, statistics on home deals of all provincial capital cities have been prepared; the average price of each square meter of a residential property in 25 provincial capital cities is below 100 million rials [$384]. The median home price of nine provincial capital cities is less than 50 million rials [$192] and only in Tehran and Ahvaz, the average price of each square meter of home exceeds 200 million rials [$769]. Tehran home prices stood at 278 million rials [$1,069] and Ahvaz at 235 million rials [$903] per square meter during the month ending Nov. 20.”
Mahmoudzadeh noted that high demand has driven up home prices in the southern city of Ahvaz, which has become popular with foreign national buyers in recent months, but was not an expensive city in the past, Fars News Agency reported.
The most expensive city in Iran, given the home prices, is Tehran and the cheapest is Yasuj with 32 million rials ($123) per square meter last month.
He put the median home price per square meter in Shiraz at 114 million rials ($438); Isfahan at 111 million rials ($426); Ilam at 40 million rials ($153); Birjand at 42 million rials ($161); Bojnurd at 45 million rials ($173); Kermanshah at 46 million rials ($177); and Arak and Zanjan at above 100 million rials ($384).
On home prices in Tehran in dollar term, the official said, “The highest average home price in dollar term in Tehran over the past 15 years was registered in the year ending March 2009 with $2,244 per square meter. This comes as the average price of each square meter of a residential property in Tehran stood at $1,051 at the rate of 250,000 rials per US dollar last month, i.e. half the price it was in the year ending March 2009.”
Noting that housing expenses accounted for 36% of households’ budget in the year ending March 2020, Mahmoudzadeh added, “Home prices increased from 12 million rials [$46] in the year ending March 2010 to 278 million rials last month.”
