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What is the role of the government in the housing market?


According to Tejarat News, the high inflation of the rent and the unsettled situation of the tenants has caused the experts and activists of the housing market to offer new solutions. Ways that, in most cases, end in forms of housing construction that can increase the supply of residential units at the community level.

One of these proposals is the construction of rental houses, which are currently being implemented and operated in some countries under the title of rental companies.

In this regard, Abolfazl Nowrozi, the Director General of the Housing Economics Office of the Ministry of Roads and Urban Development, emphasized the incompatibility of the policy of building rental houses with the culture and macroeconomic conditions of the country, and admitted that the ratio of renters has increased from 18% to 37%. He said that in other countries renting housing is an option, but in Iran it is a compulsion!

Now, it should be seen whether it is possible to build these types of houses considering the problem of lack of financial resources in Iran, and can it create better conditions for tenants?

Investigating the construction of rental housing in Iran

Mansour Ghaibi, an expert and researcher of the housing market, told Tejarat News: “There was talk about rental housing a long time ago. The problem of the country is that it has a problem in producing optimal housing, approved and approved credit for the implementation of the project and rental plans under the condition of possession.

He continued: “The government has not played a 100 percent role in projects such as Mehr Housing, National Housing and the National Housing Movement project, and has involved people and contractors in it. These cases are the summation of the government’s behavior in the production of housing, in which it has not had a successful birth certificate to a large extent; But similar cases of rental housing are being done in other countries based on the rental economy.”

This housing economics expert explained: “Rental housing is a business that needs internal and external capital to be formed with the entry of the private sector. On the other hand, the support of the government’s regulatory system is also necessary for the formation, construction and implementation of such projects. The result of these projects is after the production of rental units. The investor takes his profit from this rental and after his profit is completed, he hands over the unit.

The role of the government in the supportive housing project

Regarding rental houses, Ghaibi also stated: “Building rental houses is like a third country offering to build Line 4, but receiving interest for a few years and then handing it over.” This type of investment is a rental economy, which is beyond the control of the government, and I doubt that the government will be able to produce housing.”

He explained about the government’s role in support projects: “The role of the government, which has so far interfered with the housing project of the National Housing Movement, is considered wrong and illegal. The government should only have the role of high supervision of housing production and cannot play the role of executive, consultant and planner at the same time.

Ghaibi continued: “Therefore, the government should not interfere directly in the production of housing from the perspective of the rental economy, unless there is an opening and some countries that have good relations with Iran produce rental houses and sell them after making a profit.”

Implementing a rental plan with 25-meter houses?

Some time ago, a plan for construction was presented in the housing market called 25-meter houses, which provoked many reactions; From cultural contradictions to problems in issuing building permits for them. But some experts believe that these micro-apartments can be provided to applicants in the form of rental housing.

Majid Gudarzi, another expert on the housing market, told Tejarat News: “This plan fundamentally contradicts plans such as having children and increasing the population, and the professional rental that municipalities usually do should consider the needs of families.”

He continued: “The government must do all it can to prevent housing prices from falling because these out-of-control prices have created a housing crisis, and the problem is doubled by building 25-meter houses.”

Goderzi also said: “This wrong modeling of Southwest Asian countries in Iran has no logical justification, and the amenities of a residential unit should not be removed.”

It should be noted that rent inflation has experienced a strange growth since the beginning of 1402, especially in Tehran. Many tenants, with the beginning of the rental season and the end of their contract, could not afford to pay the rent increase again and were helpless to find a new house that fits their budget. As a result, they were forced to migrate from Tehran or live in lower neighborhoods than before, and their well-being was directly targeted.

This is a view of the rental market in the past few months, and the policies that have been implemented so far have not made much of an impact. Now we have to wait and see where the winding path of renting in Iran will go and where it will end.

Read the latest news related to the housing sector on Tejaratnews housing page.

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