How does the consequences of rising housing prices / migration to the outskirts of cities affect the property market?

According to Tejarat News, the upward slope of housing prices, especially in the city of Tehran, has always had consequences that usually show themselves with a time interval. One of these consequences can be considered migration to the lower areas and outskirts of the city, which has irreparable consequences from the social point of view in addition to the economic aspects. The path that was taken at the same time as the jump in prices in 1997 and led to the change of the social fabric of Tehran and its surrounding areas.

Important parameters of the housing economy

In this regard, Mansour Ghaibi, an expert on the housing market, told Tejarat News: In the field of housing economics, purchasing power and the quality of the apartment that is chosen for purchase are two important indicators. Buyers are always interested in the amount they pay to provide the right quality, both in the area of ​​apartments and in the area of ​​urban life.

He continued: But what has changed now is that it seems that the amount paid, both in terms of quality and in terms of having social spaces and city services, is not the real cost of that apartment and is not worth it.

Ghibi said about the consequences of this process: This issue will gradually form the plan of dividing and distributing the applicant from one region to another region. That is, if a person was able to buy an apartment in area A before, he will have to buy an apartment in area B with the same amount. This unreasonable price increase in terms of statistical affinity and economic variables has made there is no hope for buying an apartment in the capital for the next few years.

Consequences of excessive increase in housing prices in Tehran

This expert also explained about the increase in housing prices in Tehran: the excessive increase in property prices in Tehran has caused two issues for next year; Firstly, it will lead to an increase in rent and a false increase in rent and housing prices, and on the other hand, these factors will force more people in Tehran to leave the capital and migrate to urban areas around Tehran and new cities.

He continued: Of course, this trend also leads to an increase in prices in these areas; This means that the wave of false price increase that has formed in the last few months will show itself in these areas.

Ghaibi also said: This is not a desirable issue because the government is building in these areas under different titles such as national housing, and as a result, it overshadows the prices and raises the cost of construction. It will also change the biological and native culture.

He explained in this regard: This increase in rent prices in Tehran will cause costs to rise in the suburbs of Tehran and will result in an increase in property and apartment prices in new cities and the suburbs of the capital.

Ghaibi added: On the other hand, these changes and migrations will cause social, behavioral and educational changes and the originality and stability that existed before in urban areas will be lost.

Not providing peace of people in the field of housing economy

Ghaibi said about housing policies in the past years: In the past few years, the government has not been able to economically place people in an area of ​​living peace from the point of view of the price of civil services, and also their psychological and economic security has not been provided in the place of residence.

This housing market expert also said about the situation of new cities: In the new cities that have been built, there are no schools, police stations, hospitals, etc. to the extent necessary for the population. These are the transformations that cannot be answered; It is released and finally shows itself in that area and causes social harm!

He continued: On the other hand, with the migration of the residents of the capital, some people in the cities who have a better financial situation buy residential units for the purpose of investing and renting, which will cause the prices to rise in the future. Policy makers are currently looking to solve everyday problems and ignore the issues that these high prices will shape in the future.

Where is the solution to the housing crisis?

As it was said, if there is no solution for the critical situation of the housing market, as time goes by and the purchasing power of the people decreases more and more, consequences of various dimensions will plague the people, especially the residents of the metropolises.

On the other hand, migration to the areas around Tehran, while there are no facilities and capacities in those areas, and also the place of work and education of people are still located in the center, not only causes things such as increased traffic, but also the quality of life of people. It lowers to a great extent.

Of course, experts believe that the salve for the wounds of an important and productive field such as housing is not hidden in itself, and other economic parameters such as inflation and the dollar rate should be controlled to a reasonable extent.

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