Allocation of national housing land in small cities – Tejaratnews

According to Tejarat News, Hadi Abbasi Asal, the deputy head of housing and construction, announced a report on the implementation process of the national housing movement plan in the cities and said: The national housing movement in cities with a population of less than 25,000 people is being carried out by the Islamic Revolution Housing Foundation, and the progress report is to The weekly format is followed up at the Ministry headquarters in cooperation with the Housing Foundation regarding land provision, land assignment and preparation operations.

Emphasizing that in cities with a population of less than 25,000 people, land is allocated to qualified families in the form of one floor with a yard, and added: So far, 30,000 applicants in cities with a population of less than 25,000 people have been given land. Source: Tasnim

Housing needs support

Any amount and any amount of attention and help to the construction will be welcomed by many builders and it should be taken as a good omen. Housing construction needs support. The private sector has a good ability to produce housing, but the needs of this sector must be answered. Strategies that can increase production should be adopted. In the current situation, the supply is not proportional to the demand, and the production of residential units must speed up. Any amount added to the accumulation of demand will make the market conditions more difficult.

The increase in housing construction loans is welcomed by builders and mass builders. However, the granting conditions and the interest rate should be facilitated. So that it is not difficult to access. Banks are required to allocate 20% of their facilities to the housing sector. So far, none of the banks except Maskan Bank has agreed or paid this amount of facilities, and in this field, the banks have not performed acceptable.

Construction is at a standstill. In recent years, the construction of the private sector is about 400,000 residential units, and even now, with some intensity and weakness, the same amount is produced. What the government should have done was to add 600,000 units to this number so that the annual production of housing would reach one million, but in the last 1.5 years, the basis and conditions for the increase in construction were not provided.

Meanwhile, when construction inputs increase, housing prices increase. But the purchasing power of households is constantly decreasing. Therefore, the mass maker is not able to sell his product. Especially since the builder himself has to buy more expensive materials and land and must provide more liquidity. But on the other hand, he faces failure in selling the units he has built.

It seems that the solution to create peace in the housing market is to control inflation. Due to the growth of housing prices, real demand has not been able to enter the market since about 10 years ago, and it is not possible now. In general, the demands that have been created at any point have been capital. This false capital exists anyway and determines the price. If the real demand comes to the market, the price increase will intensify.