A 6-fold increase in the mortgage of a 42-meter/card unit reached the bones of the tenants – Tejaratnews
According to Tejarat News, it was a few months ago that, despite the upward trend of inflation in the society and the increase in expectations resulting from it, there were rumors of an excessive increase in housing prices and rents, and experts called 1402 “the difficult year of tenants”.
Now, with the beginning of the season of moving and transactions, the fever of increasing the rental price has risen to such an extent that not only some tenants have problems in renewing the contract, but some of them are not even able to find a new unit that is compatible with their budget and income.
Field observations in this field also show that although some tenants have experienced a proportional rent increase, some of them have also faced strange figures from the owners.
Excessive rent increase in 1402
One of the tenants of District 9 says: “My 42-meter house, which last year had a mortgage of 50 million tomans and a rent of three million tomans, has increased in price to 300 million tomans in mortgage and seven million tomans in rent this year; “I can’t handle it and I have to look for a new apartment.”
These tenants have to move to lower areas or lower the quality of their residence every time when the lease contract expires.
Another tenant in Yaftabad, who works as a service worker in a company, has faced a rent increase of more than 70% in the new year. While last year he mortgaged a 42-meter unit in this area for 50 million tomans (full), this year, in addition to increasing his mortgage to 120 million tomans, he also has to pay 1.2 million tomans a month for rent.
Meanwhile, the salary of a simple worker has grown by 27% in 1402, and it seems that rent inflation is outpacing the income of the middle and poor sections of the society.
Some owners are surprised by the amount of rent in the new year
Meanwhile, there are also owners who were surprised by the price increase announced by the companies and finally extended the lease contract with a lower amount.
The owner of a small-sized unit in Imamat Square says: “Last year, we closed the contract for our unit with a 50 million mortgage and three million tomans in rent. This year, the company said that we can increase it to 150 million tomans in mortgage and 9 million tomans in monthly rent. But we saw that this price is not possible for the current tenant, so we lowered it to 6 million tomans with the same mortgage as before.”
Statistical data shows that in the first two years of the 13th government, rent inflation broke records and even exceeded the level of general inflation in the country.
In the fall of 1400, the point inflation of rent had reached 53.6%; The following year, i.e., the fall of 1401, the point inflation of rent in urban areas was recorded as 46% and the seasonal inflation as 16.8%.
Similarly, the point inflation of the rental value of private housing has increased by more than 48% in January 2011 compared to January last year.
Rent increase in the suburbs of Tehran
The increase in rent is not unique to Tehran city and the residents of the outskirts of this metropolis have also experienced similar experiences in this field.
One of the residents of a new building in Saeed Abad Shahriar says: “In 1400, we mortgaged a 120-meter apartment for 150 million tomans. The next year, 1401, the mortgage reached 350 million tomans, and we had to pay three million tomans a month.” Let’s pay rent. This year, the landlord said that we should put 200 million tomans on the mortgage and one to two million tomans on the rent.”
The increase in rent in Tehran in recent years has raised the alarm of families migrating to the outskirts of the city and poor housing. Experts believe that in addition to the social effects and changes in lived experiences for immigrants, mass migration to these areas also affects housing prices and rents in these areas and will show its wide dimensions in the near future.
Tenancy in Andisheh settlement has had the same trend. He explains: “The full mortgage of our apartment has increased by 100% and as we have asked the company, we have to increase the mortgage by 200 million tomans. The landlord said he would come, but he kept his word, we have to move; It is not possible for us to provide this amount in a short period of time.”
Migration to cities with rent increase in Tehran
A significant number of Tehran’s population is made up of those who migrated to Tehran due to the difficulty of finding a suitable job and with the dream of prosperity and more income. Those who are forced to return to their cities due to the pressure caused by the unprecedented growth of rent compared to monthly income.
One of these immigrants, who is a young woman, says: “A few years ago, at the beginning of my migration to Tehran, I lived in a self-governing dormitory, and after a while, I was able to rent a small unit near the city center with the loan I got. I had to live with another person in my house, and now that he has decided to return to the city, it is not unlikely that I will return, although I know that I will not have a proper job in the city and my income will probably be zero.”
There is another story about these immigrants. The story of two young men whose 60-meter apartment in Azadi area, which previously had a mortgage of 300 million tomans and a rent of 3 million tomans, has increased to such an extent that they have decided to evacuate, and now they cannot find another residential unit with these amounts that can be paid back. The rent went up.
These cases can be seen as a summary of the events that inflation and the expectations arising from it can bring on people’s livelihood and life. Inflation, the effects of which are also evident on the housing and rental market, and now people are facing many obstacles to provide minimal shelter to live.
Of course, the government has also prepared a support package to control the rental market and has taken measures such as encouraging owners to sign multi-year contracts and taxes on empty houses, which based on the experiences of previous years and the opinion of experts in this field, cannot have much effect on the unbridled increase in rent prices. TejaratNews previously discussed these solutions in a report entitled “The homeless season of tenants/ Are government policies effective in the rental market?” has checked
Housing is not a commodity that can be postponed, and this makes its high cost to bring harmful consequences despite the reduction of people’s financial ability.
Experts unanimously believe that the only solution to the problems related to the housing and rental market in any region of the world lies in the macroeconomics of that country. As long as inflation and other components of the economy do not approach the standard situation, people’s inability to provide quality shelter will continue.
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