Housing – Tejaratnews

Elham Samadzadeh/ According to Tejarat News, Section Housing It is considered one of the main pillars of the country’s economy, so many experts believe that Iran’s economy will never enter the prosperity sector unless prosperity occurs in this sector.

According to the prevailing conditions in the market, housing has entered a new era that it had not experienced until today. The need is felt to carry out a thorough review of existing provisions and laws.

The golden season of housing construction

Based on past experience in the market, whenever the price of housing went up, traditional builders entered the field of construction and the overall production was accompanied by prosperity, but this trend is no longer applicable in the current situation. In fact, with the high price, the construction does not get a new life, but the inflationary stagnation casts a shadow on the construction field.

Therefore, in the current situation, policy makers, investors and also consumers should know that the housing market is facing new conditions. As a result, it is necessary to establish new policies for it, and following the old versions will be doomed to failure.

Disruption of rental market conditions

The rental market is considered one of the most important pillars of the housing sector, which is more dependent on the price. But this year, the behavior of the rental market was such that this market caused a new price shock to enter the market. In fact, with the increase of 100-120% of rent in some areas, especially in the capital, we witnessed a significant increase in prices. It was something that had never happened in the market before.

Important price ratio Housing To rent, it is considered one of the most important ratios in the discussed market, which was always in a certain price range. Activists and experts in this field in all the previous stages used to recognize the period of recession and prosperity of the rental and housing market from this price range. But this channel has already changed its direction and is going in an upward direction. This issue itself shows the new and unfamiliar conditions in the market.

In the area of ​​price growth Housing and land, which are two key indicators in the market, the growth of property prices has exceeded the growth of land prices. Therefore, in such a situation, past policies cannot be effective.

Decrease in the growth of housing transactions

According to official statistics central bank Since July 2017, we have seen a decrease in the number of housing transactions in the market. In August, the average number of transactions reached 10,000 transactions per month. This number decreased by 9 thousand units compared to May 2017. In 2011, according to the statistics of the Ministry of Housing and Urban Development, an average of 200,000 building permits were issued annually, which reached 45,000 building permits per year in 1400.

Increasing the time to buy a house

The average time to buy a house in the past was 20 to 25 years. But in the current situation, if we put the average household income in a certain range for the next few years and the inflation rate does not grow much. It is certain that the average period of buying a house has reached 76-75 years for consumers if the price increase is mild.

Increasing price stickiness in the market

The price of housing has a high stickiness, and assuming the improvement of the political conditions and the correction of the dollar rate index, there is not much hope for a sudden price reduction in the market.

Due to the economic conditions of housing in the country and its low liquidity, not much can be done to control the price in this market. If the policy maker wants to organize the price or control it, he must first organize the macro economy.

In the end, it should be mentioned that investment in this market is done in a traditional way, so in the current conditions housing is no longer associated with much profit. Therefore, in order to provide favorable conditions for the presence of investors as well as development in the field of construction, new laws and policies must be established, otherwise the market will always be profitable with the movement of investors.