Housing in the mirror of the 7th development plan / The place of housing in the development map remained empty – Tejaratnews

According to Tejarat News, the details and text of the seventh development program bill were published today. The Seventh Development Plan Bill was compiled for the years 1402 to 1406 and has 22 chapters and seven sections.

The eighth chapter of this program is dedicated to the housing sector and its details have been discussed in the form of notes; What emerges from the review of this program indicates that the government did not have any specific planning for the housing sector.

The eighth chapter of this program is actually a combination of the rules of the housing production jump plan and the licenses and legal duties of the Ministry of Roads and Urban Development in this field.

The 7th plan has not considered any strategy and budgeting for the housing sector, while people are now facing the problem of rising housing prices and rising rents, and they are having trouble providing minimal shelter.

On the other hand, almost two years have passed since the beginning of the 13th government, there has been no opening in the national housing jump plan and the construction of supportive and social housing.

The failure of housing policies in the sixth plan

The failure of the housing sector in planning and allocating sufficient funds has a history before this issue. According to the recent report of the Majlis Research Center, the 6th plan has not provided the required budget for this department and finally, none of the plans have been fully implemented.

According to part “1” of paragraph “c” of article 80 of this law, the government was obliged to develop a supportive housing program with the aim of helping to build and buy real estate and social housing and to help build rental housing, to pay rent allowances. And the Qarzul-Hasna loan and housing deposit to provide housing for low-income groups in the first year of the program law. Of course, during the years of implementation of the law of the sixth plan, this component has not had any function.

Facilitating the construction or purchase of housing

Paragraph “b” of Article 59 of this law also considered goals to facilitate the construction or purchase of housing for these classes in rural and urban areas. Part “1” of this paragraph is related to the implementation of the special plan for the improvement and renovation of rural housing, according to which more than one million units of rural housing should have been built by the end of the implementation period of the sixth plan law.

The notified quota of this project was 673,000 residential units in the total years of implementation of this law, of which only 371,000 units are under construction or completed. In this way, the performance of the programs of this component in the years of implementation of the law was 37% and its performance based on the notified quota was 55%.

Part “2” of this paragraph has also had a small performance; It was supposed to build 750,000 housing units for the low-income urban strata by the end of the law, but only 300 applicants have been awarded so far.

The reason for the non-implementation of government policies in the field of housing

The performance of executive bodies in achieving the goals of the sixth development plan can be examined, but according to the report of the Majlis Research Center in recent years, high inflation and instability in macroeconomic variables have also hindered policy making in this area.

The price of each square meter of housing in Tehran in December 1401 has increased by more than 844 percent compared to the previous five years in the same month (November 2016). Also, in all urban households, the housing price index has increased by 247% in December 1401 compared to December 2016, and in the same period, the total price index for urban households has increased by 403%.

Therefore, one of the necessary conditions for the effectiveness of housing policies is to control inflation. Therefore, the large-scale construction and construction plans of residential units without considering sustainable sources for their financing will lead to the aggravation of the government’s budget deficit and increase in inflation, which will make it more difficult for households, especially the low-income sections of the society, to access suitable housing.

On the other hand, limiting housing support programs to housing construction is one of the reasons for the unfavorable performance in this area. The high cost of land and the construction of a residential unit, especially in urban areas, makes the credits reach only a small part of the target community.

Now, by examining the details of the 7th plan in the field of housing, the despair of reforming the real estate market has taken on a different color. Although the 6th plan did not have a successful performance in the field of housing, now the President’s government has poured clean water on the hands of the people by presenting the 7th plan without setting targets and determining the path to improve the conditions of the housing market.

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