Forecasting the housing market / Does the slogan and promise control the price of the property? – Tejarat News

According to Tejarat News, Iran’s economy is not in a good condition at the moment, and inflation and high prices put the situation of the financial markets in a more difficult situation than before.

According to the statistics published by Iran’s Statistics Center a few days ago, the country’s spot inflation has reached 3.51% compared to January of last year and has experienced an increase of 2.8% compared to last month.

Housing prices also increased by 39.5% compared to January of last year; This figure has registered 39.4% in the rental market.

The poor condition of the housing market

Hassan Mohtsham, a member of the board of directors of the mass builders’ association of Tehran Province, told Tejarat News about the housing market situation: In general, the economic conditions are not good at the moment, and naturally, the housing is in an unfavorable condition due to the impact of the macroeconomic conditions.

He continued: Due to inflation, the devaluation of the national currency and the increase in the dollar rate of the price of construction materials also have an increasing trend. Especially since this year we are facing the problem of gas and electricity interruption, this has affected the price of materials such as cement and steel. The sum of these factors has made it not only impossible to control the price of housing, but there is also the possibility of its increase in the future.

The government gives people hope with slogans and promises

Regarding the government’s actions in this situation, Mohtsham said: “The government has not proposed a special solution in practice, but rather gives hope to the people with slogans and promises.” Even the units that were recently announced to be delivered or ready to be delivered are not among the National Movement housing units, and some of them are Mehr housing units that have not been delivered for several years.

In this regard, he added: Some of these units are related to the national action project. According to this plan, it was said that 400,000 units would be delivered within two years, which has not yet reached this number after four years.

Mohtsham added: In the case of the National Housing Movement, only the contracts that have been closed are being implemented, and there is still no completed unit that will reach the delivery stage. The reason for this is that because the prices are not stable despite the inflation, the manufacturers cannot fulfill their commitment and they expect the government to control this increase in prices, but the government does not have a budget.

This member of the Board of Directors of the Association of Mass Builders of Tehran Province stated: All these factors have caused problems in the production and supply of housing, while on the other hand, the demand is observed in the market.

Types of demand in the market

He explained about the demand in the market: We currently have two types of demand in the market; There are a number of consumer demands that have greatly reduced the ability to enter the market due to the high prices of real consumers.

Mohtsham continued: The other part is the capital demands, which have arisen mostly due to high prices and uncertainty in the parallel markets. Despite the fact that this demand is false, it exists, and since there is not enough supply for it, it eventually increases the price in the housing market.

Housing market outlook

This member of the Board of Directors of the Association of Mass Builders of Tehran province said about his vision of housing: I do not see a good future for the housing market considering the current conditions. At least, it is not fixed unless the government thinks about devaluing the national currency.

He continued: This is while we are entering the next year and the year 1402 is already giving signals to increase the percentage of inflation, which will spread to all goods and housing.

As it was said, if the increase in inflation continues with this situation, in the coming months, housing prices will increase excessively and unprecedentedly.

According to the latest statistics of the Central Bank, in December this year, the average price of housing in the first district of Tehran has reached about 100 million tomans per square meter.

At the same time, the conditions for getting a mortgage are getting harder every day and the cost of buying mortgages has increased.

To solve housing problems, the government must control the situation of other parallel markets and inflation; However, improving the situation of this market requires more time than other markets.

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