Did the promises make the housing knot shorter?
According to the report of Tejarat News, the examination of the performance of the first year of the 13th government in the field Housing It shows that not only the promises of the Minister of Roads and Urban Development have not been fulfilled, but the housing prices and rental rates have also increased.
the world of economy He wrote, tracking 15 main promises in the housing sector one year after the establishment of the 13th government, describes the road map of the housing trustee for the second year.
The reviews of the implementation of the programs announced in the housing sector one year after the beginning of the 13th government show that the acceptance of the housing trustee in the second year of the establishment of the current government depends on the return of the real estate market policymaker to the text of page 16 of the program announced by the Minister of Roads and Urban Development.
15 promises for housing
Investigations show that the implementation status of the program that was carried out last year by the trustee Housing In this section, it was explained and the necessity of its immediate implementation to improve the important indicators of the housing sector was emphasized. In the first year, it was not very favorable and it can be said that almost none of these programs were implemented either completely or in general. Is.
In this important program, the situation of the housing market is unfavorable and facing many problems and issues. In terms of the rate of housing and the position of housing in the household expenditure basket.
Meanwhile, in this program, it was emphasized that the roadmap to overcome the current crisis in the housing sector is the implementation of important programs in this area, which can be classified into 15 main sectors and given attention. In addition, it was emphasized in this program that no successful policies and programs have been implemented in the field of housing in the world and in developed countries unless the housing trustees of these countries look at the housing sector from the path of providing financing tools and using tax levers in order to bring it to zero. Speculative incentives and criteria and directing capital from non-productive real estate sectors (frequent and speculative transactions) to productive sectors (construction and supply). In this direction, it is necessary to use important tax tools and incentives, along with creating incentives and stock market routes to attract small and large capitals of the people to the productive field of real estate.
In his first press conference after the inauguration ceremony, the President announced that organizing the housing market by blocking non-productive real estate investment routes and eliminating speculation in this market, as well as directing capital towards productive activities, is one of the most important plans of the 13th government.
According to the report of “Economic World”, the first and one of the most important programs that was emphasized last year as the road map of the 13th government in the housing sector was the policy of “annual improvement of at least 270 neighborhoods and 10% of the area of worn-out tissue” in the country. Investigations show that this program, which was considered as one of the main policies in the housing sector since the previous years, was not successful and was not realized in the first year of the establishment of the 13th government. Currently, a large number of neighborhoods and residential units located in dilapidated structures are in need of reconstruction, renovation and improvement, which, in addition to the need for their renovation due to the preservation of life and property of citizens, are a suitable platform for meeting the housing needs of other citizens in the middle core and focal points of cities. .
The second program or policy that was emphasized in the government’s road map for the housing sector last year was “developing the housing financing market”. Allocating a significant part of money market credits to housing financing, setting up the National Housing Fund to stabilize the resources needed in the housing sector, and also providing the resources needed to reduce the interest of bank facilities and part of the costs of providing housing for low-income households, were part of the programs that were used to achieve this goal. Reference was made. Investigations show that in this field, the performances have not been favorable in the last year.
Providing the infrastructure for the official pre-sale registration of housing” was the third goal emphasized in the program announced by the Housing Trustee at the beginning of the 13th government. In the explanatory program announced by the Minister of Roads and Urban Development last year: “pre-sale of housing based on certified systems including standard contract documents and predetermined and customizable conditions, with the ability to meet conditions by insurance institutions with joint liability. The possibility of non-judicial application of the terms of the contract if the parties do not adhere to them, and the possibility of obtaining the price of the contract and transferring it to the other party after fulfilling the obligations of the executor.
It is one of the most important policies that must be implemented in the housing sector. Surveys show that despite the high demand from consumer applicants for pre-purchase housing and while now and following the long-term jump in housing prices, consumer demand, especially first-time buyers, do not have sufficient financial resources to buy ready-made residential units, the multi-year lock in the pre-sale market to The reason for the existence of obstacles and legal ambiguities in this field still remains. The unlocking of the pre-sale market, in addition to creating a safe and relatively more feasible path for some of the first-time homeowners to become homeowners, is effective in financing housing construction projects and helping builders to increase housing supply. After a year has passed since the 13th government emphasized to open this lock and pave the way for pre-sale housing, no effective action has been taken in this field and the lock of the pre-sale market is still standing.
Professional leasing is still neglected!
Meanwhile, in his plan for the housing sector, the Housing Trustee has emphasized on “the formation of the housing rental market with the establishment and presence of large-scale companies” and called it a necessity to regulate the rental market, but no action has been taken in this field in the last one year. In the program that was emphasized last year for implementation in the next four years, it was announced: “Establishment of public and private companies for the construction and supply of rental residential units, as well as the construction of rental residential units for the low-income tenths of the society” is one of the most important needs. Meanwhile, in the absence of the implementation of this program, the housing rental market has gone through one of its most inflammatory periods in the past year.
The fifth program mentioned in this program emphasized on “preventing gambling and speculative buying and selling of real estate”. In this program, to speed up the proposal or receipt of the capital gains tax bill in the field of housing in order to prevent stock market gambling and speculative buying and selling of housing and the implementation of repeated Article 54 and repeated Article 169 of the Direct Taxes Law in order to collect taxes from empty houses for Importing these houses into the consumption cycle was emphasized. This is despite the fact that, despite this emphasis, there has been no specific enforcement action in the field of dealing with speculation, profiteering, malaki and freezing of residential units during the past one year.
“Construction of one million housing units per year” can be called the most important policy emphasized by the government in this program and during the last year. This program or policy was emphasized from the very beginning of the 13th government, and most of the government’s power in the housing sector was devoted to this issue during the past year. However, this policy was not fully implemented in the first year, and one million houses in the country were not built in the first year of this policy’s implementation. However, the efforts and actions of the government to realize this policy continue, but in the first year, it did not succeed in realizing the goal.
Meanwhile, “Stimulation of supply and demand” was emphasized as the seventh promise or policy of the government in the housing sector in the program that was explained by the trustee in this sector last year. This means that simultaneously with the increase in housing supply through the implementation of the annual construction program of one million residential units per year, necessary measures should be taken in order to stimulate consumer demand and boost the housing transaction market through consumer purchases, especially first homes. In this regard, programs such as strengthening the purchasing power of housing applicants at the same time as increasing the supply and construction of residential units were emphasized. This goal was not very successful in the first year of implementation.
Borsi bridge to save housing
One of the most important policies or programs emphasized in the program described by the trustee Housing To implement in this sector, it is related to creating a stock market bridge and connecting the housing market and the capital market to each other in order to achieve two important goals.
In the program that was explained a year ago by the Minister of Roads and Urban Development as the road map of this ministry in the 13th government, this stock market connection and the creation of this bridge between the housing market and the capital market were rightly mentioned and its realization is one of the most important goals. was titled
Based on this, the establishment of a housing purchase support fund as well as a real estate fund was emphasized in order to provide the possibility of people’s micro-investment in housing construction through the housing market. The government’s goal of this program was to direct capital from the unproductive market of frequent real estate transactions to the productive construction market. Creating a stock exchange bridge between the housing market and the capital market through the aforementioned methods (creating real estate funds as well as land and construction funds) is a double-edged arrow to improve the housing market situation.
In this way, while attracting people’s funds to build residential units and solving a significant part of the problem of financing construction projects and housing supply, not only the possibility of housing applicants is provided according to the amount of their funds, but also a productive and productive market is created in the field of housing. That is, instead of being attracted to the unproductive part of the market i.e. real estate speculation and frequent transactions and leading to further inflation of prices in the housing market, the capitals entered the productive part of the market i.e. the construction and supply of residential units, and in this way, not only the field of price balance and Supply and demand are provided, but real estate speculation is also reduced.
However, in the past year, no specific and operational action has been taken in this field, and mainly the government’s power in the housing sector has been directed to the implementation of the annual construction plan of one million residential units per year.
Promise to improve the quality of construction
One of the most important promises and programs announced in the housing sector in the programs described by the housing trustee of the 13th government was “upgrading the technical structure of constructions and improving it”. In this context, three important promised programs including “creating a building inspection mechanism”, “revision of national building regulations and engineering system laws” as well as “implementation of building technical identification certificate and construction liability insurance” were emphasized, which after one year of explanation This program has not implemented any of these promises yet.
The 14th important promise that was emphasized in the housing trustee program for this sector last year was “payment of housing rent subsidies to low-income earners from the source of housing taxes” in order to support this vulnerable group that needs the support of the housing market. The government was supposed to give rent subsidies to this group of needy classes, but both in 1400 and 1401, the not very efficient and failed resolution of setting a mandated ceiling for the allowable housing rent rate was implemented. Based on this resolution, the ceiling of the rent increase in Tehran was set at 25% and in other cities at 20%, and the statistics indicate a 50% increase in the average rent during this period.
Meanwhile, laying the groundwork for the design of 3 to 5-year leases in order to control rent inflation can be declared as the 15th most important promise of the current government in the housing sector. In this field, no concrete action has been taken in the last one year.
Housing; A year after the promises
According to official statistics, “World Economy” studies show that one year after these important promises were made by the Housing Trustee, the average housing price in Tehran from August 1400 to August 1401 has grown by around 40% and the average rent in the country has grown by 52%.
The purchasing power of housing with the current loan ceiling in Tehran, which should cover at least 25 square meters and ideally 80% of the purchase price of a typical residential unit, is currently 11 square meters. Of course, this amount has reached 11 square meters from 8 square meters last year due to the increase of the mortgage ceiling in October 1400. Although it has improved slightly compared to last year, it is still insufficient and practically lacks efficiency.
Reviewing the one-year record of the 13th government in the housing sector shows that reviewing these promises draws the roadmap of this government in this sector for the second year. For the success and fulfillment of these promises, it is necessary to take three important steps. In the first step, it is necessary to create a stock market bridge between the housing market and the capital market. In this way, people’s capital is directed from the non-productive part to the productive part of the real estate market.
On the other hand, it is necessary to eliminate speculation and malaki by using the most effective form of taxation, i.e. receiving the annual tax from residential properties, and to sell the frozen units to the market as soon as possible for the benefit of consumer demand. The third solution is to try to improve the purchasing power of the household and repair the gap created between the purchasing power and the housing price by increasing the housing facility ceiling, reducing the loan interest rate and increasing the repayment period.