Housing market forecast / will the condition of houses improve in the next year? – Tejarat News
According to Tejarat News, the housing market was not in a good condition last year. Because in the first half of the year, the market was in absolute stagnation, and from the second half, increasing inflation added to the stagnation.
Although no official statistics on housing prices have been published since January of this year, field surveys confirm the continued increase in prices in the last two months.
Now, as the new year approaches, we need to see what direction the housing and construction prices will take?
Will the housing market improve?
Mahmoud Fatemi Aghda, the former head of the Research, Road and Housing Center of the Ministry of Roads and Urban Development, told Tejarat News about the direction of the housing market in the coming year: Considering the international conditions and the occurrence of positive events in the currency market, it seems that housing will also change its direction and the days experience better This is despite the fact that before this there was not much hope for improvement.
He continued: On the other hand, the government’s policies in the field of housing have become more transparent and more serious measures are being taken to finish the Mehr housing project and bring the national housing movement to fruition.
Fatemi Aghda explained: Before this there was confusion and the government did not show any movement to carry out its plans. Now, according to the Minister of Roads and Urban Development, the housing sector is going to be activated seriously, this is the determination of the government to implement policies in the market.
But he reminded: if the government does not fulfill its promises next year and the society feels that no action has been taken, the housing market will react negatively.
The state of the rental market next year
The former head of the Road and Housing Research Center of the Ministry of Roads and Urban Development said about the housing rental market: In this market, the conditions depend on the government’s policies, which should not act in an orderly manner as in the past. In the previous years, the government used to set prices in the rental market as an order, which was not responsive. Now, there is not much time left until the rental season and the government needs to deal with this area in a serious and rational manner in order to be able to control the rent.
Fatemi Aghda also explained about the cost of construction: the price of land is considered a determining factor, and in this part, mass production and industrial production of buildings can help reduce costs and reduce the impact of land prices on costs.
He explained about the decrease in the desire to invest in construction: capital goes where it gets more profit. When markets such as currency and gold are more profitable than real estate, it is natural for capital to go there, but when the currency and gold market is controlled, the real estate market is more profitable and safer.
The former head of the Road and Housing Research Center of the Ministry of Roads and Urban Development continued: It is the art of the government to control the capital market with rational and correct policies. This market can direct money towards construction by means of policies with suitable implementation capability as well as attractive incentives, which also affects prices.
He also said: If the government does not succeed in this matter, the current amount of liquidity is a flood that will destroy everything, and if it is not properly directed in its channel, we will be in trouble. But if it can be directed, the response of the capital market to the capacities created by the government in the housing market will definitely be positive.
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