‘Decline in housing prices to continue in next 2 years’

May 7, 2022 - 10:56

TEHRAN- “This year is the year of lower housing prices; this condition will continue in the country for the next two years, and we will see a continuous decrease in housing prices”, the chairman of Real Estate Agencies Union told IRNA.

Mostafa Qoli Khosravi referred to the latest report released by Central Bank of Iran (CBI) in terms of housing price in the first Iranian calendar month Farvardin (ended on April 20), and said: "The government is trying to compensate the housing shortage in the country with the National Housing Movement plan, and this plan is being prepared and implemented in several urban and rural areas”.

He said that there is currently shortage of about 720,000 housing units in the country, adding: "Every year, dilapidated apartments are added to this number, therefore, the current government intends to compensate for the housing deficit by recognizing this shortage and implementation of National Housing Movement.”

The market will react positively to the increase in supply, and the completion of the government plans including Mehr Housing and National Housing will control the uncontrolled growth of housing prices, he further predicted.

According to the CBI’s latest report, the average housing price has fallen 2.4 percent in the capital Tehran during the first Iranian calendar month Farvardin, compared to its previous month.

Based on the CBI data, the average price for one square meter of a residential unit in Tehran stood at 342.7 million rials (about $1,228) during the mentioned month.

The average housing price in the said month also increased 16.9 percent in comparison to the same month in the previous fiscal year.

As reported, the number of real estate deals stood at 3,400 in the capital city in the first month of this year, falling 49.9 percent from the previous month, while increasing 63.7 percent from the same month of the past year.

Housing prices in Iran have been constantly rising over the past three years due to various internal and external factors.

MA/MA

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