How to reduce housing prices and rents in Tehran?
A real estate expert said: If the purchasing power of the first-timers increases, the rental market will reach equilibrium.
Housing prices are constantly fluctuating. Housing prices have become terribly expensive for several years, so that no one is able to buy a house. Housing prices have become so expensive that it is not even possible to change the houseHouse price It will not be cheap anymore. Housing prices around Tehran have become expensive and few people are able to buy them. The government should take care of housing prices.
Farid Qadiri, a housing expert, told Mehr about the rental market: The rental market is a consumer market.
He further stated: Considering that we have 500,000 new couples in the country every year, nearly 100,000 of them belong to Tehran, and these are the houses of the first ones who entered the rental market due to the loss of purchasing power.
This real estate expert said about the rental market: Until the last three years, the rent was increasing based on inflation, but suddenly this market experienced a historic growth and reached an average growth of 50%, which caused problems for young couples.
Referring to the rental market situation in 1402, Farid said: The increase or decrease of rent in 1402 depends on three factors. 1- General inflation should be controlled. If the inflation is 50%, the rent will increase accordingly. Also, market equations depend on housing prices and people’s purchasing power. If the government can increase people’s purchasing power and the first-time buyers will consider buying a house. Staying at home to get out of the rental market can also reduce the trend of spring rental prices.
He continued: But the third case is housing production in Tehran, which has been stagnant since 2017. If the government can restart the construction boom in Tehran, it can adjust the rent.
In the end, this housing expert told Mehr: Policy-making should be in the hands of the main actors (home buyers, tenants, builders and sellers) and the government should not interfere in the game. With the construction around Tehran, we cannot witness that people go to the surroundings of Tehran and consequently the housing price in Tehran will not decrease with this method.