Housing price swings with the issuance of building permits / Housing prices increased due to the reduction of building permits
Elham Samadzadeh/ Housing construction is in a coma these days, which is partly influenced by the high cost of issuing construction permits and the dramatic increase in the price of construction materials. Therefore, we had an interview with Farshid Pourhajat, a member of the Mass Housing Builders Association of the country, which we read below:
It reduced the supply of cheap housing to the market
A member of the mass builders’ association said about the impact of the reduction in the issuance of construction permits on housing prices: the issue of housing production is directly related to supply and demand. When the production of housing decreases, it creates a demand for the accumulation of 5 million, which ultimately increases the price of housing.
Farshid Pourhajat, in a conversation with Tejarat News reporter, and referring to the above article, said: In the past few months, despite the talks, there was no month that the trend of housing price growth in the market, even when it seemed that the transactions due to the economic problems that It happened last year and we see the lack of liquidity of buyers, price increase and inflation was still an option that happened in our market, which is affected by the lack of housing.
Regarding housing prices in the second half of this year, he said: Regarding the reduction in housing prices, the only reason that can lead to a reduction in housing prices is a balance in this area. In this way, when the supply and demand get closer to each other, we can expect a decrease in housing prices.
Regarding the fact that the JCPOA can be a barrier against the increase in housing prices, Pourhajat mentioned: JCPOA is a completely political equation and alone contributes to economic stability. According to the existing conditions, it does not seem that the JCPOA will have a direct impact on the housing market. If the JCPOA takes place and Western countries fulfill their commitments, our macro economy will reach a level of stability, and the housing sector, which is affected by the macro economy, will reach a level of stability.
The high cost of construction materials raised the price of housing
Pourhajat announced that the high cost of the license reduced the incentive to build, and noted that the 200% increase in municipal tariffs not only reduces the incentive to build, but also has an effect on the price of housing.
He added: The manufacturer also follows this trend and sells his newly built property to the market at an expensive price. Therefore, maybe it is better that an internal agreement also happens in the country. This means that the housing market will change in terms of the administrative structure and especially the engineering structure, which is very flawed.