Alarming prediction of housing prices in Iran – Tejaratnews
According to Tejarat News, the statistics related to housing prices are now among the confidential statistics that are no longer published. But the latest statistics from December last year showed that the average housing price in Tehran has reached 50 million tomans per square meter. The housing price report has not been published for more than six months, and experts say that housing prices have grown and set new records during this period.
The head of the mass builders association told Khabaronline that the normal salary in Iran is between 12 and 15 million tomans, while a square meter residential unit in Tehran is not less than 40 million tomans, and this gap shows how people have lost their purchasing power.
Majlis Research Center recently published a report that confirms this statement. According to this report and according to the statistics published by Central Bank, the average price of each square meter residential unit in the twenty-two districts of Tehran has reached from 5 million to 48 million tomans in 5 years (from December 1996 to December 1401), which shows a growth of 950%. This is despite the fact that the minimum wage has only increased by 600% in this period of time.
This problem has caused the households’ ability to access housing to decrease, and only in Tehran 79% of households do not have access to “affordable” housing.
A cycle that causes high housing prices
But the high cost of housing creates another problem, which is creating stagnation in the market and further increasing prices. That is, a cycle that fuels the higher prices.
The head of the Mass Builders Association says about this cycle that people’s purchasing power has decreased. This has caused people to not be able to buy a house or even pre-purchase a house. The lack of demand in the market has caused the builders’ capital to be precipitated in the market and the period of capital sleep has increased. As a result of this problem, the builders’ capital is locked and the construction process is slow.
In this situation, there is a shortage of supply and this supply does not meet the demand in the market and the market balance is disrupted. In this situation, because the demand exceeds the supply, the prices increase and the purchasing power of housing among the people decreases again. In this situation, the demand also decreases, and the decrease in demand on the one hand and the sleep of capital on the other hand, disturbs the market process and fuels the high price and lack of houses in the market, and this cycle continues.
It was the turn of mass builders to migrate
The stagnation of the housing market has another result, which is the migration of housing builders. It was mentioned before that Iranian mass builders are migrating to other countries. Iraj Rahbar also confirms this news and says that in the shadow of inflationary stagnation in Iran and the high cost of providing housing for the people, Turkey, Iraq, the Persian Gulf countries have made a red assumption for the builders of Iran, and we have seen that our friends and colleagues have invested their capital. are transferred to these countries.
According to the leader of the migration wave, according to the announcement of construction activists, it has now reached Iranian housing builders, construction companies and engineers. The large number of construction projects in neighboring countries such as Turkey and Iraq as well as other Persian Gulf countries has caused the need for labor in these countries to be high.
Iraj Rahbar believes that the conditions that these countries provide for housing builders are suitable conditions and it is enough for Iranian policymakers to have a brief study to find out why construction companies are willing to work in these countries, but here the construction projects are facing a crisis and slowness.