Concerns about surgery in the housing market / What are the prerequisites for the production leap plan?
According to Tejarat News, it seems that the government of Seyed Ibrahim Raisi is serious in fulfilling the election promise of the President.
Some time ago, the site in question was introduced to register in the four million housing project, so that the first stage of this project, by inviting applicants, will be officially launched.
But the problems fell
While there has been and continues to be a lot of publicity about keeping this promise, the same old story seems to be repeating itself that was easy to come by at first but had problems.
The initial promise emphasized the construction of four million housing units in four years; This promise, however, changed later. Recently, Minister of Roads and Urban Development Rostam Ghasemi said that the construction of housing will take a year and a half.
The plan also encountered a major problem in the first place; Lack of land to build housing in some cities.
In the list of cities deprived of registration of supportive housing, there are 450 names located in 14 provinces.
Consequences of major surgery in the housing market
In addition to the challenges in implementing the production leap plan, experts warn of the consequences of this major surgery in the housing market.
Housing expert Mansour Gheibi believes that the government’s plan does not balance the market, and if no solution is found for its consequences, there may be no cure.
In a note to Tejarat News, he warned of the consequences of this plan.
The challenge of lack of diversity of applicants
Absence of diversity in the target group and applicants for government support projects is one of the existing challenges; Because their stakeholders do not have a role in the housing market as effective applicants.
He wrote: In previous governments, many of those whose applications for housing were approved could not even afford the initial payment. For this reason, the 13th government intends to receive the amount in several installments.
The market is not in balance
According to the unseen, this group has limited financial resources and can not have much impact on the housing market.
The expert added: “In such circumstances, the claim that the government can balance the market by implementing housing projects does not seem correct.”
He explained: The main applicants for the housing market are the middle and upper classes of society who are in demand for a housing unit for themselves or their children.
Factors affecting the cost price
He considers another important issue as the factors affecting the cost of housing that has not been properly seen in these plans.
Gheibi explains: In the field of housing economics and cost price, it is not only the price of land and construction materials that is important. Factors affecting housing prices fall into two categories: internal and external.
The housing expert continues: Internal factors include public and supportive policies and laws. Monetary and Credit Council approvals for the development of support portfolios also fall into this category.
The tremendous impact of macroeconomic indicators
He adds: “External factors, however, have a more dramatic and greater impact on housing prices.” The issue of housing economy cannot be considered separate from the general conditions of the country’s economy.
The housing expert continues: Macroeconomic indicators affect the cost of construction materials, technical and engineering services and labor.
The need to control inflation and manage parallel markets
Gheibi emphasizes: External factors affecting the cost of housing, which contribute to inflation and the formation of business in this area, can not be controlled by such plans.
“There should be plans to control the impact of parallel markets such as currency and gold on the housing market,” he added.
According to Ghaibi, without such programs, the cost of production will naturally increase, and housing prices will not be controlled by internal factors and supportive policies.
Inflation of housing projects
“Without designing effective programs to control external factors, the consequence of implementing housing support schemes is inflation,” he said.
but why? “Ultimately, the implementation of these plans requires ‘liquidity’, and planning must be done to reduce the money’s impact on external factors.”
Unnecessary surgery and worries about the future
He believes that this inflation occurs in a state that is not necessary. The housing market for patients in the country is in a better situation without surgery support schemes.
The housing expert emphasizes that the implementation of an unsuccessful action will cause this market to go in the opposite direction, for which there may no longer be a cure.
Gheibi adds: The financial resources of this plan should be properly defined so as not to put more pressure on the sick banking network of the country.
According to him, the possibility of incorrect implementation of this great challenge in the housing market raises concerns about the future of the market as well as the banking network.
It is recommended that you read the full text of this memo entitled Concerns about Surgery in the Housing Market.
Read the latest housing news on the Tejarat News Housing Market page.