The cost of building housing increased by 80%! – Tejarat News
Zainab Mokhtari– According to Tejarat News, for example, while during the first week of November last year, the price of a 20 kg package of putty powder was on average 35 thousand tomans, but this figure reached 77 thousand tomans in the first week of November this year, which 120% growth of this construction material is shown.
Another example is the average price of cement. The average price of a 50 kg package of type 2 cement in the first week of November last year was 35 to 37 thousand tomans, but this construction material has experienced an increase of 83 to 102 percent in the past year, and in the first week of November it was at least 64 thousand tomans. The price is up to 75 thousand tomans. This growth in prices is not limited to these two construction materials and we can provide a long list of materials that have experienced severe inflation in the past year.
The jump in the cost of housing construction
Farshid Pourhajat, a member of the board of directors of Mass Builders Association, told ISNA that the cost of building a house has increased from 5 million tomans per meter last year (minimum price) to 9 million tomans per meter this year. This estimate indicates an 80% jump in the cost of construction in one year. Of course, the construction cost for this year is estimated by some other housing market activists to be up to 14 million Tomans.
Mohammad Reza Javaheri, Chairman of the Board of Directors of Maskan Bank Financial Group, said earlier: “The cost of building each meter of housing in August 1400 was estimated at around 9-10 million Tomans, but now this figure has increased by about 40% and has reached 13-14 million Tomans, which is due to “It is from the increase in the cost of engineering services and construction materials.”
Dream promises
Officials of the Ministry of Roads and Urban Development come up with new ideas every day and make new promises about the annual construction of one million residential units. However, the 13th government has not achieved anything other than “failure” in this area, following the experience of previous governments.
In the past one year, despite the announcement of numerous plans and promises to build one million residential units in the form of the National Housing Movement Plan, there is still no news of the delivery of even one residential unit from this complex. Improper location, lack of suitable land for the construction of units, problems in providing funds and facilities, and the low financial ability of the applicants, which is decreasing every day due to inflation, constitute the major challenges of the government’s construction plans.
The government’s procrastination in the field of housing construction and the inability to solve the problems, but every day, the meter drops and increases the construction costs for the real applicants of the housing market and even the national housing plan. This trend will also lead to a new wave of price growth in the real estate market.
Price growth of construction materials in one year
The growth in the price of construction materials has been recorded while the commodity exchange has entered the field to adjust the prices in the steel and cement markets in the last two years. Although, for example, in the cement market, price fluctuations are influenced by various developments and factors such as export duties and seasonal demand fluctuations (reduction of construction in the cold seasons and growth of housing production in the first 6 months), but still, tip cement 2 During the past year, it has maintained its upward trend and now shows a growth of over 100%. White cement is no less than its counterpart, and over the past year, each 40 kg bag of this construction material has recorded a price growth of at least 15 to 45 percent.
The drop in steel prices did not help either
Among construction materials, it can be said that the price of steel has experienced a price reduction due to the situation of the steel chain in the world markets. Mehrdad Akbarian, the head of the Iran Iron and Steel Association, has recently stated that the state of implementation of development projects by the government was not favorable at all, and that the per capita consumption of steel in the country has decreased sharply compared to 2019 and 2019.
This reduction in consumption is considered an important signal for the price of steel chain products and pushes it back. Of course, this trend does not mean that this product is cheap, and the cost of supplying steel and rebar for the building still plays a significant role in the cost of building housing.
At the same time, the price of building materials, including Unolite, roofing blocks, types of cement, paint, putty powder, glue, and even engineering services has increased significantly in the last year and has greatly increased the cost of construction. The officials of the Ministry of Roads and Urban Development are talking about housing production. In the meantime, even the banks do not help the applicants and builders of the private sector to build housing in the field of payment of facilities, and there is no clear vision other than promises in the field of housing.