National housing inflation overtakes Tehran
According to Tejarat News, Housing inflation ahead of Tehran; What is the story?
According to the world of economics, the latest statistics on housing price developments in the country show an unprecedented overtaking of real estate inflation in cities and the capital. According to the “World of Economy”, statistics show that this spring, the average housing price in the country reached 11 million and 500 thousand tomans per square meter. This is while in this season, the average price of housing in Tehran has been equal to 29 million and 300 thousand tomans. Official statistics on housing price developments in the cities of the country and the city of Tehran show the unprecedented overtaking of real estate inflation in the cities of the country from housing inflation in Tehran in the period from the beginning of 1996 to the end of spring 1400.
The average price of housing in the cities of the country, according to official statistics, while in this period (beginning of 1996 to the end of spring 1400), has increased 7.1 times, which is 6.7 times the growth rate in the housing market of Tehran in this period .
This shows that the inflation of the housing market in the cities of the country has overtaken the inflation of the housing market in Tehran in an unprecedented event. The same event, on the other hand, has led to another event in the housing market.
The ratio of the average housing price in Tehran to the average housing price in the cities of the country, which was normal and equal to 2.7 times during the periods when the housing market was normal in the capital in the 90s, has now reached 2.5 times. This issue shows the precedence of real estate inflation in the cities of the country over the housing inflation of Tehran in the spring of 1400.
In periods from the 1990s, when the housing market was in a normal state, that is, the market was neither in a state of stagnation nor in a state of prosperity, and consumer demand and capital were present in the market in a normal volume.
– As in 1994 and 1995 – the ratio of average housing prices in Tehran to the average housing price in the cities of the country was equal to 2.7 times. The average price of housing in Tehran due to the high volume of demand for housing in this city, lack of land for construction, Tehran being the capital of the country (political, economic, occupational, etc.), always and usually more than two and a half ابر Equal to the average housing price in other cities.
In the 90s, when the real estate market was in a normal state in terms of trading volume and price changes, the normal ratio of the average housing price in Tehran to other cities in the country was equal to 2.7 times. This ratio went out of the normal range at the same time as the housing price jumped.
In 1997, the jump in housing prices, which began in Tehran, changed this normal ratio. While housing prices in Tehran had jumped this year, the sharp rise in prices had not yet spread to other cities. The average housing price in the capital reached 3.5 times. This amount was equal to 2.8 in the advanced phase of the housing market, ie in 1996, when the volume of transactions and housing prices had not yet entered the growth phase. But in 1997, when the jump in the Tehran housing market began, but there was still no news of a jump and boom in the housing market of other cities, the average housing price in the capital increased to 3.5 times the national average housing price.
In 1998, the housing market in other cities gradually reacted to the jump in housing prices in Tehran and was affected by the increase in prices. In this year, when both the price of housing in Tehran had jumped and in the second year there was a price jump and the housing transaction market in other cities of the country was on the path of price jump, this ratio decreased by 3.3 times.
But since the spring of 1999, the relationship between housing prices in Tehran and housing prices in other cities has been in the reorganization phase. In 1999, not only did the housing price jump continue in Tehran, but also the jump in other cities of the country, which had started in 1998, and the average housing price in the country’s cities increased with a noticeable slope.
As a result of this event, the average housing price in Tehran reached three times the national average housing price. In summer 99 this ratio increased to 3.2 times, in autumn to 2.9 times and in winter to 2.7 times.
In general, the average ratio of housing prices in Tehran to the national average housing prices in 1999 and at the same time with the housing market in the phase of reorganization of housing prices between Tehran and the country, reached 2.9 times. In the spring of 1400, however, this ratio has fallen short of expectations. The ratio of the average housing price in Tehran to the average housing price in the country, which was normally 2.7 times in the normal periods of the housing market in the 90s, reached 2.5 times this spring in an unprecedented event.
This means that real estate inflation in the country’s cities has overtaken Tehran’s housing inflation, and for this reason the price gap between Tehran and the country has reached less than the usual level in the normal years of the 90s.