Inefficiency of the government’s policies in the housing market / August inflation turned the government’s hand!
According to Tejarat News, the real estate buying and selling market has been in recession for months, and rent prices have experienced unprecedented inflation since the beginning of this year.
People, especially in Tehran metropolis, have faced difficulties in providing minimal shelter, both in the purchase and rental positions, and they are living in more difficult conditions every day. This is while the government’s policies have been nothing more than a showmanship in the field of housing and have become ineffective one after the other.
Accumulation of inflation brought the economy to the ground
Mansour Ghaibi, an expert on the housing market, told Tejarat News about the reason why the government’s policies in the field of real estate are not useful: “A cumulative and accumulated inflation that was a product of previous years has now plagued the housing economy. This inflation alone stands in front of all the government’s small and easy-to-implement programs in order to organize housing.”
Gheibi also explained about the inflation in the housing market: “According to the report of the Statistics Center from August 1402, point-to-point inflation was about 40%. The simplified meaning of this statistic will be that households spent about 40 percent more in August of this year compared to the same month in 1401 to obtain goods and buy necessities and services.
He continued: “Therefore, the cost of housing, including the purchase or rent of an apartment unit, has also included an increase in cost.”
Dangerous mandated intervention in the housing market
This housing market expert also said about the intervention of the government in the housing market: “Considering this report of the current situation in the country’s economy and observing the stagnation in the housing sector and further reducing the inflammation caused by the false increase in property prices, the only reason can be It is considered an orderly and operational intervention in the comprehensive and costly control of the housing market.
He continued: “At the same time as the claim of price reduction, the intervention has put the volume of real estate transactions at the lowest possible level, and this itself has caused the contraction of capital in the housing sector and has made the production of wealth due to work circulation in the housing economy ineffective. »
Consequences of continued recession in the housing market
Ghaibi also said about the continued stagnation in the housing market: “The government’s keeping the market in a state of stagnation and stagnation has caused a decrease in the demand for construction, and as a result, we will face an increase in the accumulation of demand for purchases.” Because in the future, with the smallest political and economic impulses, we may see an increase in the price of property and housing in the society.”
Housing inflation rate in August 1402
According to the report of the Iran Statistics Center, housing has experienced the highest inflation in the second non-food commodity during the period of August 1402. The monthly inflation of this basic need is 3.3% and its point-to-point inflation is 38.5%. The annual housing inflation has also reached 36.6 in August.
The monthly inflation growth in the rental market has also been recorded at 3.3% in line with the housing market. Also, the annual inflation of this market has grown up to 36.5% and its point-to-point inflation is estimated at 38.4%.
This is while the Minister of Roads and Urban Development and the Governor of the Central Bank had announced that housing prices have dropped by 15-20% in the past months. The point that the government should pay attention to is that without controlling inflation, improving the macroeconomic situation and applying specialized and efficient policies, it will not be able to organize the chaotic housing market!
Read more reports on the housing page.