Reduction of housing construction in Tehran

According to Tejarat News, the construction market has also entered a recession due to the growth of prices up to 600% over the past four years and the decrease in the capacity of housing applicants.

In the first five months of 1400, only 2491 building permits were issued in Tehran, which indicates a decrease of 18% compared to the same period in 1399. In fact, an average of 498 licenses are issued every month and 3686 new units are built in Tehran.

According to the number of 7.4 residential units per license, the volume of construction in the first five months of this year was 18,433 residential units, which if divided into five months, an average of 3686 new residential units per month in Tehran. It is made up of about one third of the effective market demand.

Record in property sales

Of course, property sales are currently in recession, and in the first six months of this year, an average of 4915 housing transactions were made in Tehran, which of course shows that the volume of sales has exceeded 33% of the volume of construction.

The amount of construction in Tehran compared to 1390 in terms of the number of residential units has decreased by 79% and in terms of the number of licenses has decreased by 80%. 10 years ago, an average of 2480 building permits were issued in Tehran every month and about 17,500 new houses were built in Tehran. The total number of licenses in 1390 was 29,763 and the number of residential units under construction was 210,924.

In which areas is the most construction?

The highest amount of construction among the regions of Tehran in the first five months of 1400 belongs to region 15 with 281 building permits, region 4 with 227, region 2 with 179, region 14 with 160 and region 8 with 154, respectively. Has been the item.

The lowest licensing rates occurred in Region 9 with 49 cases, Region 10 with 83 cases and Region 6 with 88 cases. It is important to note that in District 5, as the most traded area of ​​Tehran’s housing market, 88 building permits were issued during the first five months of this year, which ranked it twelfth among the districts of Tehran.

80% decrease compared to 1990

According to these statistics, construction in Tehran compared to 1390 has decreased by 80% and compared to 1399 has decreased by 18%. In the current situation, most of the real applicants for housing, whose purchasing power has reached its lowest level, have moved to the old apartments.

In the last seven years, the share of units over 16 years old has increased from 12% to about 30% of the total transactions in Tehran. In contrast, the share of houses over five years old, which was about 58% of the total transactions in 1393, has decreased to 33% in August 1400.

Reasons for construction decline

The jump in housing prices is the main reason for the decline in transactions and construction in the capital. The price of each meter of house in Tehran has increased from 4.5 million Tomans in May 2017 to an unprecedented 31.7 million Tomans in September 1400, which shows an increase of 600%.

Although the monthly and annual price growth rates are about a third higher than last year, the experience of the last four years has shown that the price curve has moved upward as soon as the relative boom in sales is established.

However, major experts believe that the housing market does not have the potential for significant growth in the second half of 1400. The government’s plan to build one million housing units a year, stabilizing rival markets including currency, gold and the stock market, lowering inflation expectations and the possibility of nuclear talks are among the reasons for the relative calm in the housing market in the second half of this year.

Source: ایسنا

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