Housing prices on the path to stability
According to Tejarat News, the housing market is going through calm days and the increase in housing prices in each month shows a growth of less than three percent compared to the previous month. A look at housing prices in Tehran last year shows that, for example, in June, July, August and October, housing prices grew by 10 to 11 percent per month and in September by 5 percent, but this year in September and October housing prices fell and in In November of this year, the price of each meter of apartment has a slight growth and is equivalent to 1.2 percent.
In November of last year, housing prices increased by 118 percent compared to the previous year (November 1998), but in November this year, this number is 17 percent, which shows that the inflation of housing price points in November 1400 is more than 100 percent lower than in November 1999. Is.
Thus, the statistics show that the growth of housing prices has moved away from the jump and its pace has slowed down. A noteworthy point in reducing the acceleration of housing prices is its comparison with the inflation rate.
Considering the lower growth rate of housing in November compared to the general inflation rate in this month, it seems that the decline in housing price growth will continue in the coming months and housing price growth will be less than the monthly general inflation rate.
The decline in construction and housing supply below the demand level is an effective factor in increasing housing prices, especially in the last three years. According to Iqbal Shakeri, a member of the parliament’s civil commission, “the accumulated demand for housing is about 12 million units, and housing construction must be more than one million a year to create a balance.”
Given the slowdown in housing prices, especially in the last four months, in the housing market, activists in this area, the implementation of the government’s plan to build one million homes annually and start registering consumer applicants are an important factor in this process.
The housing market outlook is the annual production of one million housing units, which leads to a decrease in the number of applicants in the housing market. The higher the supply of housing, the lower the number of applicants who have been waiting for years to buy a house, which creates a positive expectation in the housing market. The expectation has had a positive effect on the slowdown in housing prices.
On the other hand, in November of this year, more buyers entered the housing market and their number is two thousand more than the buyers of housing in October. In November, 7,300 housing transactions were made in Tehran, which was 5,500 in October. This indicates the return of buyers’ confidence in the housing market. Housing applicants appear to be convinced that housing prices are close to the real price.
Source: Iran newspaper