The stagnation of the housing market also affected construction materials – Tejaratnews
According to Tejarat News, investigations from the field of construction indicate that some builders fail to pass the checks. Building Materials They are in trouble. However, companies and material brokers are still contacting project managers to encourage them to buy construction inputs in installments.
According to Isna, it seems that the recession of the housing market has affected the construction sector. This spring, housing production in Tehran has decreased by 46.1% compared to the same period last year and by 13% in the whole country. Most of the building permits that were issued in the fall and winter of last year were related to the National Housing Movement Plan; A project that has progressed gradually due to the lack of resources.
Although some experts believe that the boom in construction can lead to the growth of housing prices. But on the other hand, some others say that the supply of housing leads to a reduction in demand pressure and is beneficial to the people in the long run. Because housing costs have the heaviest weight in a household’s portfolio, and providing a house can significantly lower the costs of families and reduce inflation.
The Ministry of Roads and Urban Development talks about the implementation of one million units of the National Housing Movement. However, according to the announcement of the National Land and Housing Organization, projects have been defined for 509,000 units and 194,000 units have reached the foundation stage. The officials of the ministry say that self-ownership units, rural renovation, etc. should be added to this number, which will bring the total housing production in the country to one million units.
But the general situation shows that hope for the promise of the Ministry of Roads and Urban Development to build four million residential units has faded. Due to the inability of the applicants to provide funds, the increase in costs compared to last year and the failure of the banking system to enter this plan to provide loans for the units, the projects have been slow in implementation.
The worsening of the housing recession compared to last year has had a negative effect on the ancillary industries of this sector. Although factors such as the slowdown in housing transactions, currency fluctuations, mandated pricing, power outages at some points, and cement and steel export problems have created problems for the cement and steel industries, but builders consider the most important factor in the slowdown of the construction input market to be the sharp decline in housing construction. Of course, since cement was introduced in the commodity exchange, this industry has undergone transformation and has received more attention.
On the other hand, the success of the government’s programs in removing the electricity restrictions of cement and steel factories has led to the surplus production of construction inputs, which at least from this point of view, worries about the inflation of construction materials have decreased and the market has calmed down.
The price of construction inputs in Tehran in the summer of 1401 experienced a decrease of 3.4% compared to the spring. Meanwhile, in the spring season, construction inputs in the capital registered a 26.3% increase in price compared to the winter of 1400. Among executive groups, the highest seasonal inflation was related to “building painting” with a 9.9% increase and the lowest inflation was related to the “cement, concrete, sand” group with a minus of 15.4%. The price of “iron, rebar and profile” group also decreased by 0.4% compared to spring. The price of each kilogram of rebar is currently between 16,000 and 17,000 Tomans, and the price of each packet of type 5 cement is approximately 55,000 Tomans.
In the summer of 1401, point-to-point inflation of construction materials in Tehran city was 29.3%, which has decreased by 14.1% compared to the previous season (43.4%).