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Housing construction projects were closed in some cities/ what is the reason? – Tejarat News


According to the report of Tejarat News, according to the news that was published yesterday in “Isna” by one of the provincial officials of housing construction projects, construction operations have been closed in some cities due to the lack of cheap labor.

The lack of cheap labor is the reason for the closure of housing projects

Mohammad Ali Narimani, head of the Islamic Revolution Housing Foundation in Ardestan city in Isfahan province, has announced: Housing projects in Ardestan city have been closed due to the lack of local labor at a reasonable price.

He stated that the lack of local labor at a suitable price for government housing constructions led to an increase in the cost for the applicants of these residential units.

In this report, he has emphasized that the set of responsible institutions at the country level should help to benefit from cheap and non-native labor forces that can be used for the benefit of housing applicants. Considering the current state of the country’s economy and the high inflation that exists, the closure of housing projects will have additional costs for the applicants.

The price of building national housing became 100% more expensive!

Rokna wrote: The Ministry of Roads and Urban Development in the summer of 2019 set the base rate at 2.7 million tomans per square meter in the contract with the builders of the National Housing Movement Plan.

19 Shahrivar 1402, Mohammad Javad Esmaili, the CEO of Farman Imam’s executive headquarters, said that the cost of building the units that will be delivered this year will be 950 to 1 billion tomans (including the applicants and facilities). These units have packages, radiators, faucets, etc., and only their cabinets have not been worked, which will be done by the applicants.

He further said: The cost of building each square meter of these units is currently around 8.5 million Tomans. The income of the applicants, including the loan, is about 950 million tomans, which will increase next year. Unfortunately, nothing special happened to these units in the previous government, i.e. in 1999 and 1400. For this reason, we are behind the schedule of building the units.

The conflicting statements of the officials in these years regarding the finished price and the delivery time of the projects indicate the lack of coordination between the government and other relevant institutions and ultimately the uncertainty of the finished price. This inconsistency has reached the point where two officials, within a short period of time, express two different opinions about the final price.

What is clear is that the cost of construction per square meter of the National Housing Movement plan has increased by 100% from the beginning until now and after more than 2 years, and it has reached from about 5 million tomans per meter to about 10 million tomans in 1402 which includes adjustment in the following years and will face an increase in price based on inflation like these years.

Currently, the builders of Tehran have estimated the minimum cost of building one square meter of housing at 15 million tomans, excluding the land price. That is, in fact, the construction of government projects is not much different from private projects. Because in private projects, in addition to the initial pre-sale discount of the units compared to the daily price of the ready units, the delivery time is clear, the payment steps by the buyer according to the progress of the project, the inclusion of a late penalty for the parties in the pre-sale contract, which obliges both parties to fulfill their obligations. There is no price adjustment clause and cost increase based on inflation, which the buyer and the contractor know that the sooner the project ends, the better for both parties.

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