Reactions to the role of real estate consultants in the market / Who made housing expensive? – Tejarat News
According to Tejarat News, the Majlis Research Center recently reported a 950% price increase in the real estate market in a 5-year period. According to this report, the price of each square meter of housing in Tehran has increased from 5 million 88 thousand tomans to 48 million 73 thousand tomans.
In such a situation, some experts emphasize that the trend of the real estate market can’t be considered as a decrease just by the price reduction in the recent period. In this regard, Baitullah Satarian, an expert on the housing market, recently told Tejarat News: Housing prices and rents have never decreased. What has happened these days and what is the magic wand that will bring down the prices?
He explained: For example, housing prices increase by 50% and then decrease by 5%. We cannot say that it has decreased. Of course, it may have decreased in luxury areas where there are no longer customers, but in normal areas where a large group of people are present, the price problem still exists.
Who made housing expensive?
But what has been the reason for years of inflation in the country’s housing market? Some people put real estate consultants in the middle in this regard. For example, they even consider the reason for the reduction of prices in the campus market to be the regulatory clashes that took place with this trade in the past days.
Not long ago, Tejarat News addressed this issue in a report. One of the real estate consultants of this area said: Dealing with some real estate consultants in the campus has caused a significant price reduction in the apartments of this area. Now, an 87-meter apartment, which was worth 2 billion 400 million tomans in phase 11 until just one month ago, has now decreased to 1 billion 930 million tomans.
Of course, some other owners of real estate companies considered the lack of demand for other reasons, including the excessive increase in property prices in this area. They also believe that prices had already risen to such an extent that customers no longer had the elasticity to respond to it, and as a result, demand also dropped to a large extent.
Satarian, an expert on the housing market, also told Tejarat News: In the past 30 to 40 years, whenever governments have reached a dead end, they have looked for the culprit and blamed the problem on others. How much influence can real estate agents have on the housing market of an entire country?
He continued: They always say that their impact is less than 10% and that they can be effective if they act in a unified way throughout the country. Of course, if they want to work on a certain area or block and increase the price of houses, they may be effective by 10-15%.
This real estate expert also explained: Real estate has been captive to these frivolous and useless assumptions for 50 years and it has never been successful. The problem is elsewhere. The government is unable to solve the problem and is looking for the culprit. One time they say the real estate mafia, the next day they talk about business and then about real estate consultants.
Real estate consultants are in the middle?
The audience of Tejaratnews has different opinions about the role of real estate consultants. Some consider their role to be significant in this matter and believe that this trade has a significant role in the high cost of housing.
– “Only real estate companies put housing to this day.”
– “I am a real estate person. Sir, real estate has a lot to do. Tell us not to hear from you. If you want, I will give you an example.”
– “There are only real estate agents who put astronomical prices on houses.”
A group, however, points to issues such as production inflation and lack of housing supply.
– “When it takes six months to obtain a construction permit, when the government increased the building insurance premium 100 times, when the removal of parking by the municipality increased 20 times, when the costs of the engineering system tripled, when the price of construction materials doubled, when the construction permit fees doubled equalized, when the material commission has doubled, when the wages of construction and contractors have doubled, who do you think can be blamed for the price increase? The judement is your’s.”
– “It is a big mistake to announce that it is the fault of real estate consultants. When the country of Selane needs a million housing units, have they really built and delivered 8 million housing units in the last 8 years? Is the answer no? This is the first condition, when the demand in the society is more than the supply and production, inflation will rise. This is your second condition. Add the price of iron and construction materials. This is the third and fourth condition when people in the society have more than 100 building units and it is not registered anywhere. And they don’t pay taxes, they don’t give the empty house to the tenant. These four conditions and the fifth condition is the absence of housing and housing monitoring system, and it is possible that real estate consultants are sometimes 5% to blame, which can be solved by paying taxes. The sixth condition is the absence of a system for the accurate monitoring of unlicensed and unlicensed real estate consultants.
– “The price reduction occurs when the supply of the product meets its demand, sorry, the construction situation has not changed, which your Excellency is talking about reducing its price.”
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