Did the expensive materials stagnate new properties? – Tejarat News
According to Tejarat News, this spring, the inflation of construction materials was 43.4% compared to the same season last year. The highest growth was related to cement, concrete, sand and 55.8%. Compared to the previous season, the winter of 1400, the inflation of materials grew by 7.9%.
According to Isna, the effect of the price growth of construction inputs has appeared in the form of creating a price gap between newly built units and units with a building life of three years or more. Surveys show that the price of unopened units completed this year is far more than the apartments that entered the housing market before 2018.
The construction materials market usually follows the point-to-point inflation with a small difference. In October of this year, the point-to-point inflation rate was 48.6%. If the price of construction inputs has grown in the same way, the construction price will also increase. Meanwhile, the annual inflation of Tehran’s housing market is 38%.
Due to the stagnation prevailing in the housing market, housing prices are lagging behind the general inflation. Now you can buy apartments with a building life of more than three years at prices far lower than the construction rate. At the same time, the sales share of newly built apartments has reached the lowest level in the last eight years.
In October this year, units with a building life of less than five years accounted for 28.6% of all housing transactions in Tehran, which shows a 14% decrease compared to October 1400. The share of apartments less than five years old has reached 28.6% in a situation where in 2014 these units accounted for 58% of sales and purchase contracts. In fact, the transactions of newly built apartments have decreased by 50% compared to eight years ago.
The heavy growth in the price of newly built apartments and the stagnation in this sector have led to a decrease in construction. This spring’s statistics show a 48% drop in construction in Tehran compared to last year. In the whole country, the production of housing shows a decrease of about 13% compared to the previous year. Simultaneously with the decrease in housing production, the transactions of newly built units have also decreased, which is influenced by various factors such as the jump in housing prices and the stagnation of transactions.
In the spring of 1401, permits were issued for 5945 residential units in Tehran, which shows a decrease of 48.4% compared to the previous season and 46.1% compared to the same season of the previous year.
This spring, the number of 90 thousand and 290 residential units in the permits issued for the construction of buildings is predicted in all urban areas of the country, which shows a decrease of 21.8 and 12.7 percent, respectively, compared to the winter and spring of last year.
Experts cite various reasons for the decline in construction at the same time as one of the largest government housing projects, including the inflation of construction materials, the stagnation of real estate transactions due to the jump in housing prices, the decrease in the purchasing power of applicants, and the wait for the injection of new government units. He pointed to the housing market.
43.7 million tomans per meter of housing in Tehran
The trend of decreasing the monthly price growth rate in the housing market of Tehran, which started in July this year, continued according to the report of two custodians of statistics. According to the announcement of the central bank, the average price per square meter of a house in Tehran this month reached 43.7 million tomans per square meter, which shows a growth of 1.2% compared to the previous month and 38.2% compared to the previous month. Also, the weighted average price of an apartment in Tehran is 46.4 million and the calculated average is 44.3 million tomans. According to the report of the Central Bank, the number of transactions was 5.4 thousand, which has decreased by 10.2 and 1 percent compared to the previous month and the same month in the previous year.