The uncertainty of investors in the housing market – Tejaratnews
According to Tejarat News, Seyyed Mohammad Mortazavi said about housing construction: The reality is that monthly and yearly we see a fall in the number of building permits issued and we are experiencing a decrease in the desire for new constructions.
He stated that the decrease or fall in the issuance of building permits has reduced the motivation and enthusiasm of investors and builders to participate in this sector, and pointed out the reasons for this and added: The most important reason is that the housing market has become unpredictable. We have had an increase in the finished price due to continuous inflation in the construction sector, while wages have also increased and the price growth has spread to construction materials.
Pointing out that in recent days, concrete factories have been ready to increase prices due to the increase in the price of sand, he clarified: We hope that the request in this regard will not be approved, of course, this issue is the result of the increase in the price of sand.
The head of the national association of mass builders further announced the closure of some cement production factories due to lack of fuel and emphasized: this issue has directly affected the concrete and, as a result, the finished price has undergone changes. On the other hand, rebar in recent weeks, due to the increase in currency prices and the decrease in the fall of the national currency – fortunately, we had good news about this with the new policies of the Central Bank – has caused the price of steel and rebar to increase by 30% and cause a price jump. .
At the same time, Mortazavi stated: This happened while we are using domestic resources to produce steel and rebar.
Emphasizing that the housing market is unpredictable and the cost price of the housing and consequently the selling price is also uncertain, he said: the transaction market has progressed in such a way that this sector has become an uncertain market for the buyer of unstable prices. Both parties do not know what the task is, and this issue exposes the investor to a very high risk.
He added: In this situation, it is natural that investors and builders prefer to stop executive works.
The withdrawal of consumer demand from the housing market
The head of the National Association of Mass Builders stated that the increase in prices and the instability of the housing market have caused many people to leave the housing market, and said: due to the increase in the cost of living and the fact that the share paid for housing is also increasing, it has made households unable to afford it. . It means that they become weaker every day. If the right time to provide housing capital is about 20 to 30 years, today it has increased to more than a century. The fact is that the waiting period for buying housing is not comparable to any other country.
Expressing that the instability of the housing market has caused serious concerns, Mortazavi stated: It seems that the only issue that needs to be resolved in order to organize the housing market is inflation control. As long as we don’t have a plan to curb inflation, there will still be damage in the housing market. This also goes back to international relations and how to neutralize the sanctions.
He emphasized: Until we control inflation and have the right tools for this, and we cannot have a definite forecast of the housing market, the situation will not improve.
Source: Tasnim