employment; A victim of the housing recession – Tejaratnews

According to Tejarat News, everything is related in economics. Every cause has an effect and every event sets the dominoes of the next events in motion.

Living in the shadow of Iran’s economy has taught people that any factor may make their table smaller and cause the unemployment of at least one member of the family. Currently, the average youth unemployment in the country is twice the world average.

These issues often originate from political issues and gradually open their way to economic and social issues.

The housing market is no exception to this rule. Currently, this productive market, which includes a large part of income generation in every country, is not in a good condition in Iran, and every day the number of constructions decreases compared to the previous day.

On the other hand, the decrease in profit from this process has decreased to such an extent that mass producers prefer to use their capital in another sector.

According to the latest statistics of the Iranian Statistics Center, only 736 building construction permits were issued by Tehran Municipality this spring, which has decreased by 6.50% compared to the previous season and by 47.2% compared to the same season last year.

Also, in the same period of time, 29,437 building construction permits were issued in the whole country, which decreased by 4.20% compared to the previous season and by 3.15% compared to the same season last year.

This statistic shows the stagnation of housing construction last year. But the reduction of participation in construction, except for housing, what destructive effects has it had on other businesses?

The impact of housing recession on other different businesses

Building materials are needed to build a house, whether it is an apartment or a villa. Also, jobs such as engineers and construction workers are directly involved in construction; Even now, a large number of these people are generally disappointed with their job’s income generation and have turned to other fields.

In general, at least 50 types of industries are related to the construction industry. Based on this, Tejaratnews investigations show that many sand washing workshops across the country are now in danger of being closed.

This case has also reduced the sale of construction materials such as cement and ceramic tiles and this issue can be destructive for them as well.

This is while the cement and steel industries are not in good conditions due to the electricity cut as the basis of the construction industry due to high prices, and in this situation, not only the construction of housing contributes to their poor condition, but also buying and selling. The house has also decreased due to the high price, economic conditions and people’s purchasing power.

The situation is the same in all other industries, and the lack of construction, along with problems such as gas and electricity outages, has caused many smaller units to either face bad conditions or close down.

The reasons for the decline in construction in the country

One of the most important reasons for the current stagnation in the housing market is the price increase and inflation of construction materials, which is facing an upward trend day by day. On the other hand, the price of land has also increased and reduced the purchasing power of applicants. Also, people’s ability to buy newly built apartments is experiencing a declining trend day by day.

The statistics of the Central Bank have been showing for months that people’s demand to buy older houses has increased and the desire to buy newly built apartments has decreased.

The next reason for the reduction in construction is the lack of annual tax on residential properties, which has reduced the amount of investment in housing construction, so the housing market needs a tax lever such as the annual tax on real estate.

If the proper mechanism for the housing industry and the laws governing its supply and demand are not thought out, and the inflation rate is always on an increasing trajectory, it is not clear how long this recession will continue and what other factors will affect housing. .

Read the latest housing news on Tejaratnews housing market page.