Housing builders migrated from Tehran to the north of the country

According to Tejarat News, the latest official statistics published by the Statistics Center of Iran show the manufacturers Housing They left Tehran for construction.

The capital’s share of construction investment has decreased by the standard and number of building permits issued in 1400 of the total national permits. According to the same statistics, this share has been growing in the northern provinces.

This issue can be interpreted as a decline in the process of construction activities in Tehran and the rise of new constructions in the northern regions of the country, especially in tourist provinces such as Mazandaran and Gilan.

According to the world of economyThe reason for the decrease in Tehran’s share of building permits was related to the growth of inflation expectations and the jump in housing prices in Tehran in two periods in the 1990s, namely in 1991 and another in 1997.

In both periods, due to the jump in housing prices and the loss of access to a significant number of consumer applicants from the property market (especially in the recent period of jump in housing prices that began in 1997 in Tehran), a significant volume of housing units built by Builders faced a sales crisis.

What is the reason for the decrease in sales of residential units built?

In a situation due to price jumps HousingThe purchasing power of consumer applicants in the real estate market has been weakened and a large number of these applicants, who constitute effective demand in the real estate market, have been forced out of the margins of the market. شد.

This affected and diminished the attractiveness of construction activities, such as construction investment and housing construction in the capital.

The jump in housing prices, the forced withdrawal of consumer demand from the market, and on the other hand the attractiveness of real estate and criteria instead of productive construction investments, caused the loss of builders and real estate investors from landlords.

In fact, this event stems more from the destructive causes of the “jump in housing prices” and its effect on unproductive real estate behaviors than from a positive change, ie reverse migration.

Investors and building builders in the capital also faced difficulties due to high inflation in the cost of construction and deprivation of sales power from builders as a result of price jumps and the loss of power of households applying for consumer housing.

Last year, the return on construction investment, or the construction profit margin in the capital, approached the figure equivalent to the interest rate on bank deposits.

This is while the standard income and unproductive activity in the market HousingIn the period of price jump, the annual minimum is equal to 50%.