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Housing prices have increased by 950%! – Tejarat News


According to Tejarat News, some media close to the government claim that “houses are becoming cheaper”, but the research center of the Islamic Council has reported on the critical situation of housing in Tehran and the 950% increase in its price over the past five years.

In a five-year section of the housing market, citing the statistics published by the Central Bank, the Majlis Research Center has announced that each square meter residential unit in the twenty-two districts of Tehran from December 1996 to December 1401, from 5 million and 88 thousand tomans. It has reached 48 million and 73 thousand tomans.

Based on this, the housing in Tehran metropolis has witnessed a growth of about 950%, while in the same five-year period, the minimum wage of the workforce, which is determined by the government, has increased by about 600%, from 1,125,000 tomans to 6,000,000 And it has reached 725 thousand tomans.

Housing inflation in 12 years

The reports of the Iranian Statistics Center show that the average housing price in Tehran in the fall of 2009 was one million and 843 thousand tomans; This average price has grown to 48 million and 288 thousand Tomans 12 years later, i.e. in the fall of 1401, in an unprecedented event.

In other words, it can be said that the average housing price in Tehran has increased by 2500% and has grown 26 times between the autumn of 2009 and the same period in 2001.

In other words, in 2009, a person could buy an apartment of about 50 meters in average level with about 100 million Tomans; Now, however, he has to spend about two billion and 500 million tomans for the same residential unit.

The reasons for the increase in housing prices in Iran

Iran’s housing market suffers from all these issues and has been facing problems from both the supply and demand sides for a long time; High prices have reduced people’s purchasing power to a great extent, and now not only is this market facing a lack of consumer demand, but the decrease in the profits of mass builders and the increase in the price of construction inputs have also presented this market with a serious challenge.

At the same time, with the decrease in the value of the national currency, this market has become an arena for earning profit and maintaining the value of assets against inflation. In recent months, capital demand has grown to a great extent in the housing market, which can be another reason for the increase in inflation in this sector.

From a general point of view, the housing price in Iran can be seen as a function of the critical macroeconomic situation in the past years, which has been strengthened by international sanctions, the growth of the inflation rate, and finally the increase in the price of the dollar.

Housing prices are decreasing these days?

According to Tejarat News, the decrease in property prices in recent days has been reported by the activists of the housing market. A whisper that started from the housing market of the new cities of Pardis and Parand, and now some news agencies claim that this price reduction has also happened in Tehran. Baitullah Satarian, an expert on the housing market, believes:

Housing prices and rents have never decreased, and if something has been said about this, it does not seem true. What has happened these days and what is the magic wand that will bring down the prices?

Satarian explained: For example, housing prices increase by 50% and then decrease by 5%. We cannot say that it has decreased. Of course, it may have decreased in luxury areas where there are no longer customers, but in normal areas where a large group of people are present, the price problem still exists.

Of course, market activists consider other factors to be involved in the reduction of housing prices. Now, due to the decrease in people’s purchasing power and the excessive increase in housing prices during the past year, the demand has decreased drastically.

Finally, since there is no customer for the prices available in the market, the owners and intermediaries have to discount the residential units and sell them at a percentage below the market. However, some real estate companies believe that a lot of time is needed for these discounted units.

Also, housing activists see the long-term perspective of housing prices as increasing. Economist Peyman Molavi had previously stated in an interview with Tejarat News that the average housing price in Tehran will exceed 62 million tomans per square meter in June.

Read the latest housing news on Tejaratnews housing news page.

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