Is the housing market coming out of recession?
According to reports Trade News-Many applicants Housing They did not buy last year and waited for signs of a downturn in the market, but now the central bank’s figures have raised concerns about a six per cent rise in housing prices.
Quoted from Young ReportersMany government officials, including the Minister of Roads and Urban Development, as well as the Deputy Minister of Housing and Construction, have made promises to stabilize housing prices.
According to the latest statistics of the Central Bank, which is related to March 2014, the average purchase and sale price of one square meter of residential unit traded through real estate agencies in Tehran has reached about 35 million and 100 thousand tomans. This figure indicates an increase of 6.2% compared to the previous month.
This figure has increased by 16% compared to the same month last year. But compared to the point-to-point growth of March 2016 (equivalent to 93.7%) has been much less. This indicates a slowdown in housing prices in 1400 and could be a positive signal for the market.
The rent index of rented housing in Tehran in March 1400, equivalent to 45.8 percent compared to the same month last year has increased.
What about buying and selling in the housing market?
Abdullah Meshkani, a financial market expert, told Tejarat News that the increase in transactions was greater. Rising housing prices have made many people unable to afford it, but rising prices are due to rising liquidity growth.
He continued: The future of the housing market is highly dependent on Borjam. Borjam can direct inflation in Iran, and we have to see if this agreement will be finalized or not.
Mostafa Gholi Khosravi, head of the Housing Union, said about the market situation: “The market is currently in recession.” If the central bank, the Expediency Council and some officials allow it, the market may reach a more balanced situation.
Gholi Khosravi continued: In March, despite the fact that prices were falling and sales were being made, the Central Bank announced a 6.2% price increase.
What do market participants say?
But opinions in the market are different. “It’s a lot better to buy now than it is in a few weeks,” says one real estate consultant about buying real estate in the current state of the housing market. They say prices are set to rise and owners may no longer want to sell.
Another market participant states: The market is not very interesting, but it is the best time to buy. Since there are few sales in the market, better property can be bought.
A real estate consultant in an interview with Tejarat News believes that the market is buying and selling as usual and anyone with a budget can buy.