A sharp drop in the housing affordability index / the pressure of people is no longer enough to buy a house! – Tejarat News
According to Tejarat News, the housing market in Iran has suffered many problems for many years and has gone through countless ups and downs. Buying a house has always been one of the biggest concerns for Iranians, and some people have never been able to buy a house for themselves when their life is over.
However, the current situation is one of the most difficult periods that people go through to buy a house. Expensiveness, stagnation and lack of construction in the country have practically made buying a house a distant dream for the majority of the society, and in addition to that, the unprecedented inflation of the rental market is also a double pressure on their shoulders.
Housing affordability index is an index that measures people’s purchasing power in housing. Babak Naghdari, head of the Majlis Research Center, told Ilna: Housing prices, income and purchasing power of the people are presented in the form of the housing affordability index, and the higher the housing price, the lower the purchasing power of the people and the housing is in recession. This means that we are far from the housing affordability index.
He considers the first influential factor in this debate to be inflation and then the decline in housing production in the 90s as one of the factors affecting the current situation, and finally he points to speculation in this field. Of course, the wrong policies of the government in this field cannot be ignored either; Policies that have caused damage in some way since the years after the war.
The head of the Majlis Research Center has also explained about the role of government policies in improving the housing market situation: amending the housing law is one of the solutions; Currently, the housing pre-sale law is followed with great strictness, and the simplification of this law can be a solution.
He continued: Another solution is to activate housing cooperatives, despite the problems that cooperatives have, but these groups can be one of the solutions to solve the housing problem of the people. Also, financing from different methods such as promissory notes, sukuk, clearing, production, project fund, etc. are among the many tools that can be used in the financing sector of the housing sector.
A mortgage is not enough to buy a house
The amount of purchasing power of mortgage is a proof of the sharp decrease in purchasing power of people and the unsettled housing situation in the country. This loan, which until the last decade was enough to cover a significant percentage of the house purchase price, now even though its ceiling has reached 960 million tomans, even one room cannot be purchased with that amount.
At the same time, the cost of receiving and its monthly installments have also increased to an alarming extent, and practically the poor sections of the society are not able to receive it. Therefore, the people’s income is no longer the answer to cover the cost of buying housing, nor the facilities that the government considers for the public are appropriate to the existing conditions and goods!
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