Sale of a house in Tehran with a discount! / Was the housing market bubble emptied?

According to Tejarat News, some experts have recently claimed that the housing bubble has decreased.

In this regard, the secretary of the Tehran Mass Builders Association, referring to the reason for the reduction of the housing bubble, said: The slight decrease in housing prices this year is due to lack of demand. Housing prices have increased ninefold in the last four years. This high price has caused people to not have consumer demand to buy a house.

Ramin Goran Orimi explained to Tejarat News: Housing builders have to sell their houses at a discount in order to turn their investments into money. This does not mean selling the house below the cost of building a house.

He continued: “When mass builders can not sell the house at the real price, they are forced to reduce the price slightly. As a result, they go bankrupt over time.

The price of building materials has not changed

The world of economics recently wrote in a report: The unprecedented jump in housing prices in recent years has caused an explosive growth in the price-to-rent ratio and disrupted the normal relationship between the two real estate variables, but the current situation shows the housing price bubble It is declining, but there is still a long way to go to reach the normal level.

In this case, the secretary of the Tehran Mass Builders Association said: “Due to the determination of the wage rate and the stability of the price of housing construction materials, there is no bubble.” That is, the average price of housing is the same as 32 million and 500 thousand tomans. Although the housing bubble is said to have been reduced by less than one percent, this is not the case. This price reduction is due to a sharp drop in demand.

Earlier, Ramin Goran Orimi, secretary of the Tehran Mass Builders Association, said: “People do not have the money to buy a house in Tehran.” Hence, the construction of mass builders has also stopped.

To read more, read the news of housing purchase transactions in 1400.