Housing in the trap of construction stagnation/politicization in the housing market intensified capital flight!

According to Tejarat News, the housing market has experienced the most difficult conditions in the past few years. This is while, according to experts, the actions and policies of the government have not only not reduced these inflammations, but have also made the situation more chaotic.

The most recent measures in this field are the tightening of online platforms and platforms, which, of course, have been strengthened by creating a special media environment in order to remove the burden of responsibility for the high cost and lack of housing from the shoulders of the government. But what is the condition of housing now and where will it go in the future?

Short-term stagnation in housing construction

Baitullah Satarian, an expert in housing economics, told Tejarat News: “Now a short-term recession is prevailing in the construction market, and on the other hand, this recession is also seen in the housing transaction market. The reason for these conditions is the inflation of recent years in the housing and construction market, which still continues on its way.”

He continued: “As it was said, the production in the housing sector has decreased a lot, and now there is a prevailing situation where we have less prosperity and the outflow of capital from the housing sector is seen. These events will make the deficit in the housing sector show itself more in the future.”

The empty claim of the government to build housing

This housing economics expert also said about the National Housing Movement project and its impact on capital outflow: “Now the government has claimed that it wants to build one million residential units. On the other hand, builders active in the market are small builders and not large companies that have a correct analysis of housing and the future.

He added: “Therefore, when the government makes political use of housing, capital flight from the housing market intensifies. In the sense that it is beating the drum that we want to build one million residential units, and since small producers do not have a proper analysis of the housing sector, the number of obtaining permits will immediately decrease and funds will be transferred to another sector.

Satarian also said: “On the other hand, when the government starts registration, these people leave the market and enter the waiting line. This happened in Mehr Housing too and the government abused the Masak department politically. “The government cannot fulfill its commitment and practically the applicants enter the market with frustration and lower purchasing power.”

Censorship of housing statistics and claims of price reduction

Another crisis that has cast a shadow on the housing sector for months is the censorship of statistics related to developments. The government thinks that by using the tool of censoring economic statistics, it will reduce inflation and the resulting expectations, but so far, it has not resulted in any results other than the confusion of the housing market activists.

Satarian also explained in this case: “Not publishing the statistics is rubbing salt in people’s wounds. Housing has had an upward trend in the last 50 years and in any condition of inflation; Even in its recession, housing has been in a state of inflationary stagnation. How is it possible that it is the way the officials claim these days and how much has it become cheaper? “Everyone sees and understands the situation on the market floor.”

He continued: “Now the government wants to improve the situation by not publishing statistics and being strict with the platforms, which seems to cause more projection and erase the face of the problem.”

Therefore, it can be concluded that the continuation of the current situation will take the housing market out of the current hole and throw it into the well. Now this market is so confused that there are no significant buyers left in the market, and on the other hand, builders have also left the construction pit and lost their desire to invest in this field.

Read the latest housing news on Tejaratnews housing page.

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