Saturday 16 November 2024 - 14:45

Date: 30 September 2020 , 03:59

News ID: 9930

NEWS SERVICE: HOUSING and BUILDING

Housing price in Tehran rises 5.1% in a month

Housing price in Tehran city has risen 5.1 percent in the sixth Iranian calendar month (August 22-September 21), from its previous month, according to the latest report released by the Central Bank of Iran (CBI).

The CBI’s report put the average price for one square meter of a residential unit at 242.9 million rials (about $5,783) in the capital city in the sixth month of this year, up 91.7 percent from the figure for the same month in the past year, IRIB reported.

Meanwhile, the number of real estate deals has fallen 6.8 percent in Tehran in the sixth month of this year compared to the fifth month, while rising 203.7 percent compared to the same month of the past year.

Last week, a member of the Iranian Parliament (Majlis) Civil Committee said that the drastic and unprecedented rise in housing prices in recent months is going to lead the housing market to a recession in the coming months.

“With the dramatic and unprecedented rise in housing prices, the market is expected to enter a recession for at least three to four years in the coming months, but naturally, as the recession intensifies, housing prices will fall by about 10 to 20 percent,” IRIB quoted Mojtaba Yousefi as saying.

Unfortunately, housing prices have risen by about 200 percent in recent months, and this has created many problems for real house buyers, Yousefi said.

“The main problem is that in such a market real buyers cannot afford to buy houses and instead the market has become a playground for brokers and speculators.”

According to the official, the housing market trend in Iran has been sinusoidal, meaning that housing prices have risen over a period of time and then the market has entered a recession, however, in the last two years the trend has become contrary to the previous years and the housing prices have been constantly increasing.

source: TehranTimes