Housing price increases 8.4% in Tehran city

July 1, 2022 - 12:25

TEHRAN- Average housing price rose 8.4 percent in the capital Tehran during the third Iranian calendar month Khordad (ended on June 21), compared to its previous month, according to a report by the Central Bank of Iran (CBI).

Based on the CBI data, the average price for one square meter of a residential unit in Tehran stood at 394.14 million rials (about $1,313) during the mentioned month.

The average housing price in the said month also increased 32.8 percent in comparison to the same month in the previous year.

As reported, the number of real estate deals stood at 13,900 in the capital city in the third month of this year, rising 32.3 percent from the previous month, and 171.9 percent from the same month of the past year.

As previously reported by the CBI, the average housing price rose 16 percent in the capital Tehran during the last month of the past Iranian calendar year 1400 (ended on March 20), compared to the same month in the preceding year.

Based on the CBI data, the average price for one square meter of a residential unit in Tehran stood at 351.2 million rials (about $1,170) during the last month of the past year, up 6.2 from its previous month, and 16 percent from the same month of the preceding year.

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

Although, in early May, the chairman of Real Estate Agencies Union said, “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”.

Mostafa Qoli Khosravi referred to a report released by Central Bank of Iran 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.

In early June, transport and urban development minister said that 1.35 million units of National Housing Movement are currently under construction throughout the country and the number is increasing every day.

Making the remarks in a ceremony to break the ground for starting the construction operation of 15,000 units of National Housing Movement in Chitgar region, northwest of Tehran city, Rostam Qasemi said, “With the support of the parliament and the credit provided for the facilities of National Housing Movement, we will proceed according to the schedule”.

After National Housing Action Plan (started in 2018), National Housing Movement is the government’s second major program to provide affordable housing units for the low-income classes.

The operation for the construction of 209,212 residential units of National Housing Movement began in early February.

National Housing Movement to construct four million housing units in four years is one of the major plans of the current government in the housing sector.

According to the plan, out of these four million residential units, 3.2 million units will be constructed in cities and 800,000 units in villages, some of these units are currently being constructed after providing lands and preparing the necessary conditions.

MA/MA

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