Housing market outlook in the new year/Inflation is the main player in 1402 in the field of construction

According to Tejarat News, the housing market in 1401 went through a volatile and difficult path. Although no new statistics have been published since January of this year regarding the changes in housing prices in Tehran, but based on field reports, it seems that the price per square meter of a residential unit in this metropolis has reached its ceiling compared to the last few years.

On the other hand, people’s purchasing power has decreased drastically and buying a house has become a distant dream for a large segment of the society. Since production is also facing problems, experts predict that the housing market will be in recession until May and June this year.

Time-consuming healing of the disease of the housing market

Farshid Pourhajat, the secretary of the national mass builders’ association of the country, told Tejaratnews about the recession prevailing in the housing market: When the issue of recession is raised, it should be checked whether there has been a recession in the field of production or not. It is too early to answer this question and no new statistics have been published compared to last year. It should be seen how the statistics of construction permits are.

He continued: But based on what can be inferred from the field, the housing production situation is still the same as last year, and the same procedure can continue in the new year. So far, nothing new has happened unless there are changes in planning and policies.

Pourhajat stated: Any program that is used is subject to time and this disease that has been created in the last 10 to 12 years cannot be solved easily.

Housing policies are astray!

The secretary of the National Association of Mass Builders also said about the field of sales: Now there is a problem in the field of sales, people do not have the power to buy housing; The private sector enters the market with confidence as long as there are no suitable conditions for investment.

He continued: The conditions are not suitable and the government should take urgent measures in this area. Problems cannot be solved by talking and it is necessary to plan in the field of housing with an expert and economic perspective in order to achieve better conditions.

Pourhajat stated: As it was said, the housing market is not in a good condition and we have not seen any decision to take place in this regard. Whenever there was a problem, the statesmen went astray.

The secretary of the National Association of Mass Builders explained about the macroeconomic situation and its impact on production: Now the macroeconomics is also in trouble and instead of taking a policy to boost production, it is repressive policies and income policies are only for institutions and organizations. It is planned by the government.

Obstructing municipalities to produce housing

Regarding the cost of building permits and the problems arising from it, Pourhajat stated: Nothing positive has happened until today; In the case of construction permits, municipalities across the country are looking to impose new costs on the manufacturer under the name of obtaining permits.

He continued: Not only municipalities but also other organizations are looking for these conditions; As long as the housing production suffers from these complications and bureaucracy and bureaucratic systems, nothing special will happen.

The secretary of the National Association of Mass Builders also explained about the government’s cooperation with the private sector: our proposal is clear, the government should once and for all correct the problems of the production sector together with the private sector of the country, but I am not optimistic that with these policies that we are following today, something new will happen in Occur in the field of housing.

The impact of inflation on housing

Pourhajat considered inflation as the main player in 1402 in the field of housing and construction and said: Recession can also be a part of this market. When inflation occurs, there will be an increase in prices.

He said about the increase in wages in 1402 and the effect of the growth of the set of expenses on the production of housing: the wages increased at the beginning of the year, which of course has some drawbacks.

The Secretary of the National Association of Mass Builders continued: The Supreme Labor Council has now increased salaries by 27%, on the other hand, municipalities have also increased their expenses by 27%; Has the government considered its expenses in the budget bill to the extent of this two percent? Although there is a debate in this 27 percent.

He said: As long as the conditions are not carefully checked, there will still be an increase in prices, and prices will continue to rise like in previous years.

Read the latest news related to the housing sector on Tejaratnews housing news page.

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