Does the construction of national housing solve the market problem? – Tejarat News
Zainab Mokhtari/Tijarat News, the country’s annual need for new housing is estimated to be at least one million units. Meanwhile, according to statistics, only 90,290 construction permits were issued in the spring of this year, which means that the construction market is lagging behind the real needs of the housing market.
To cover the country’s need for residential units, the government has started the National Housing Movement. But this plan has also faced great challenges in providing land and money from the beginning. Critics consider this plan to be in line with the previous plans of the past governments and believe that the national housing movement is just like the national housing initiative and Mehr Mehr. Therefore, he could not overcome the obstacles in the past year.
The failure of the national housing movement
As the statistics Ministry of Roads and City Planning It shows that 5.5 million people applied for national housing. Among them, 3.6 million people have been recognized as eligible. Out of 3.6 million people so far Only 333 thousand people 9% of eligible people have deposited the initial income of 40 million tomans.
On the other hand, the banks that were supposed to provide facilities of 250 to 450 million tomans to this project, have not taken a step in this way due to the lack of progress in construction. Therefore, the government project of the National Housing Movement failed in its first year.
Construction lagging behind demand
The latest data of the Iranian Statistics Center on construction permits are related to the spring of this year. Accordingly, during the first quarter of this year, 5,945 construction permits were issued in Tehran, which shows a 48.4% decrease compared to the previous season (winter of 1400). This figure has decreased by 46.1% compared to the same period of the previous year (Spring 1400). Meanwhile, the number of construction permits in Tehran city was only 5,945 in the spring, and at least 27,800 real estate transactions were registered in the housing market this season, which shows that the construction in the housing market is lagging behind the real demand.
Construction halted as a result of the recession
In a conversation with Tejarat News, Iraj Rahbar, the head of the board of directors of the National Association of Mass Builders of Housing and Construction of Iran, has identified the increase in housing prices as one of the main reasons for the stagnation of construction permits. He stated that the increase in housing prices exceeded the ability of the market’s applicants and was higher than expected, and said: This increasing trend caused transactions to stop and create a transaction stagnation in the housing market.
The leader added: When the investor cannot supply and sell his products, he cannot return his liquidity and capital. The chairman of the board of directors of the National Association of Mass Builders emphasized: This process makes the investor not to start a new project, which resulted in the lack and reduction of the issuance of building permits.
The importance of national housing in saving the housing market
According to the leader, the only opening in the housing market at the moment is the National Housing Authority or supportive housing, which has the same process as Mehr housing, and during which one million units are supposed to be built annually. The Chairman of the Board of Directors of the National Association of Mass Builders, stating that the National Housing Movement plan has the support of the Parliament’s resolution, said: Now we must rely only on this resolution, and if the government wants to develop housing production, it must be sensitive to the national housing movement and on it. to concentrate
The readiness of the private sector to help build housing
Referring to the financial problems and the challenge of lack of capital in the National Housing Movement, the leader announced the full readiness of the private sector, especially mass builders, to help and participate in this plan.
In the same context, this housing market activist said: the private sector is ready to enter into construction projects. Whether it is in the national housing plan or in the form of investment and participation; But this action will not go anywhere unilaterally and should be done in a bilateral cooperation. This means that the second party, which is the government, must provide the necessary support.
He added: We have many problems financially in supportive housing. The ability of the applicant is not so much that, for example, he has brought 400 million tomans for national housing. From the beginning, we had suggested that private sector capital should be used in this case. Currently, there is a necessary preparation for this. But there must be a plan to use the capital of the private sector, which, of course, has not yet been implemented.
The stagnation of the housing market has increased in recent months due to the increase in housing prices on the one hand and general inflation, which has led to a decrease in the ability of applicants. This recessionary process not only leads to the deepening of society’s problems, but due to the decrease in attractiveness in the housing production sector, it will also intensify the employment crisis in this area.