Large areas were left without customers – Tejaratnews

According to Tejarat News, in November this year, housing transactions in Tehran increased a bit, but the main demand was for small apartments. Because the effect of the jump in housing prices in the last five years has led to the stagnation of large units.

As a matter of fact, as the price of housing increases, the power of the demand side decreases, and this distance has caused the few applicants of the housing market to move towards small units of the size according to the purchasing power of the households.

Surveys show that currently about 80% of the apartments offered for sale in the Tehran housing market have an area of ​​more than 100 square meters; While the share of this meterage group is 25.3% of definitive transactions. Apartments above 150 meters occupied only 5.9% of the total transactions in Tehran in November 1401.

Statistics show that we are currently faced with a significant amount of large units in the housing market of the capital; While the demand pressure is for small houses. Some apartments with an area of ​​more than 150 square meters are still unopened after more than three years of their construction. Meanwhile, the supply side constantly updates the price under the influence of inflation expectations.

Field surveys show that after presenting the statistics of housing market developments in November, which showed a 6.8% price growth, some sellers have raised the offered prices.

On the other hand, the lack of quality files in the market is evident. Due to the stagnation of construction in recent years, most of the units offered for sale are old and defective.

The lack of small-sized apartments that have enough facilities has caused the price of these types of units to grow more compared to large-sized apartments. This November, the annual growth of housing prices in District 10, which is the center of small units in Tehran, was 60%; While the average price increase was 46% in Tehran and 30% in Region 1. Most of the apartments in District 1 are of large size.

Statistics of the stagnation of the market of large apartments in Tehran

The set of factors that led to inflationary expectations drew part of the funds to the housing market in November 1401 and gave this market a half-and-half prosperity. In this month, about 8,000 apartment purchase and sale contracts were concluded in Tehran, which indicates an increase of 47.8% compared to October this year and a growth of 9.6% compared to November last year. The average price reached 46.7 million tomans per square meter, which has increased by 6.8 and 45.9 percent compared to the previous month and the same period last year.

Mehdi Ravanshadnia, an expert on the housing market, told ISNA about the reasons for the increased volatility of this market in November: People usually consider the changes in the currency market as a sign of future inflation, and in such cases, they buy goods that can protect their capital against inflation. . Based on this, the fluctuations in currency prices that started in October caused changes in inflationary expectations, which led to the movement of capital towards the housing market and appeared in November. It is obvious that as long as the trend of exchange rate and inflation is increasing, price growth will continue in parallel markets such as gold and housing.

He stated that newly built units have gradually become rare in the housing market and added: In the current inflationary conditions, we sometimes see that some sellers stop selling. This lack of supply has also become a factor for the growth of prices.

Referring to 8,000 transactions in November 1401 in Tehran, this housing market expert said: Comparing this number with the last two years shows that the number of transactions is not so low and shows a normal figure. In some months, we had 2,500 transactions, and the figure of 8,000 units is a significant number that shows the release of some of the society’s funds to the real estate market.

Ravanshadnia considered the most important ways to stabilize the housing market to control general inflation and increase construction, and said: Outside of the housing sector, inflation and currency price growth must be curbed. In the inner part of housing, there is no other way than production. This production should be in proportion to the demand, which is currently a major part of the demand for small-sized units.