The government’s showmanship in the rental market/do tax incentives control rental prices?

According to Tejarat News, the rental season started at the beginning of May and continues until the end of summer. The rental market, however, is in the midst of a price hike and has closed the hands of applicants to provide housing.

The Ministry of Roads and Urban Development recently announced that 114,000 users have registered in the real estate system and 23,488 rental contracts have been registered.

On the other hand, according to the advisor of the Minister of Roads and Urban Development, owners who rent their property to families with three children or extend their contract for more than one year, will be subject to tax exemptions.

Also, the recent plan to organize the rental market has determined that the government can determine both the ceiling of the rent price increase and the rent price for cities with 50,000 people and above. If the owner does not comply with this limit, with the tenant’s complaint, the rent amount must be returned to the specified amount and also the owner will be fined 40% of the non-observed limit.

At the time of drawing up the rental agreement, real estate consultants should also review the previous year’s agreement in order to introduce them to the tax authority if the limit set by the owner is not met.

Rent market outpacing general inflation

The situation of the housing market and rent is in a critical situation, and housing market experts have called this year a difficult year for tenants. Housing rent, especially in a metropolis like Tehran, has risen to such an extent that some statistics prove that rent growth is higher than the general inflation of the society.

People are forced to migrate to lower areas every time the contract is renewed, and some people are even pushed to the outskirts of the city. In this situation, it seems that the current policies of the government are only a temporary cover for the serious problems of this market.

Determining the rent ceiling and monitoring it while the society is facing increasing inflation will only result in the reluctance of the owners and violation of the owner’s personal rights. On the other hand, the government is removing and reducing the powers of real estate consultants, which will endanger the livelihood of some people.

Baitullah Satarian, a housing expert, had previously said in a conversation with Tejarat News: In the past 30 to 40 years, whenever governments have reached an impasse, 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 added: 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 housing expert also emphasized that housing has been a prisoner of these useless assumptions for 50 years and has never achieved results. According to Satarian, 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.

Improvement of the rental market depends on organizing the economic situation

Experts believe that until the general situation of the economy and inflation does not come out of the critical situation, the rental and housing market will struggle with this high price. Now the inflation of building materials and other things involved in building construction has progressed to such an extent that it has made mass builders unmotivated for construction and even the supply of housing has become a problem.

All in all, we can say that without solving these issues, it seems that the current policies of the government are now only a show maneuver to take control of the unrestrained growth of prices in the season of rent and deals.

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