The difference between the rental prices of old and newly built houses is zero – Tejaratnews

According to Tejarat News, high prices and inflation always have different long-term and short-term effects on societies, disrupt traditional ratios and change the behavior of economic groups.

A clear example of this statement is the changes that the housing market has faced in recent years. Stagnation in transactions and construction, reduction in people’s purchasing power and unprecedented increase in the price of residential units have changed the previous combinations. One of these changes that the media has written about in the past months is the convergence of rents for new and old apartments. But how close is this to the truth of market performance?

The intersection of new and old housing prices

Examining the housing advertisements of different areas shows that in some areas there is a price close to this. For example, a newly built apartment with an area of ​​100 meters in Punak has a mortgage of 500 million tomans and a monthly rent of 20 million tomans, while the rent of another unit in the same area with the same area built in 2012 is 500 million tomans in mortgage and 18 million tomans. It has a monthly rent of million tomans.

Also, the same cases can be seen in the files of other regions, such as region 10, which is one of the most popular regions according to Pubshin reports of the Iranian Statistics Center. One of these files is a residential unit, which was built in 2014 and has an area of ​​about 60 meters. The owner of this unit has considered a full mortgage of 400 million tomans for it. On the other hand, an apartment in the same area with the same size has a mortgage of 390 million tomans and a low rent of 1.5 million tomans. But now we have to see what could be the reasons for such an event?

Decrease in supply and increase in rent

It has been several years since the inflation of construction materials and, in general, the increase in construction costs and the decrease in the profit margins of mass builders have brought construction to a recession. The latest report of the Iranian Statistics Center on the issuance of construction permits also indicates a 28% decrease in the construction of residential units in the spring of 1402 compared to the winter of last year.

As a result, this situation and the decrease in the supply of housing to the consumer market, especially in metropolitan cities, have caused more favor for older units and as a result, their rental prices have increased.

What are the advantages of renting new and old houses?

Of course, on a more general scale, the square footage of these apartments is higher than newly built units, and as a result, sometimes this price equality is due to the superiority in square footage.

On the other hand, now landlords are renovating their units due to the lack of files offered to the market, and by adding internal facilities to it, they rent their apartments at a higher price.

Experts believe that one of the ways that the government can return the traditional composition to the market and reduce prices is to increase supply. Of course, the government has been trying to do this since the beginning of the year by implementing policies related to the identification of empty houses, but since it was found that these empty units were often owned by banks and government institutions, the policy of supplying empty units did not go anywhere.

Read the latest news related to housing in the housing section of Tejaratnews.