A 60% increase in housing prices is a warning for tenants – Tejaratnews

An economic expert states: It is unreasonable to expect property prices to increase by 60%, but rent not to increase, or to increase by 10% or a very low percentage.

According to Tejarat News, Fardin Yazdani, an expert on the housing market, says about the situation of the rental market: it is not possible to control the prices at the moment. Basically, the control policies that are pricing and acting in an imperious manner in the market are not enforceable, and even if they are tried, in the medium term, they will do the opposite.

He adds: In fact, it does not only reduce the prices, but in different ways it causes the supply of rental housing to decrease and, as a result, the prices rise.

This housing market expert states: The reason why it is not possible to implement is clear. The price of the property has increased dramatically and therefore the rental rate, which is the cost of using these assets, has increased and will increase accordingly.

Yazdani states: Based on this, expecting the property price to increase by 60%, but the rent not to increase, or to increase by 10% or a very low percentage, is a very unreasonable expectation.

Source: Online news