Which institution does the mortgage go to?
According to Tejarat News, Tehran Municipality increased urban construction tolls by about 70% this year, and thus the average construction toll per square meter of housing in Tehran reached about one million tomans. This is happening at a time when the rate of housing construction tolls in some urban areas has risen so much that it has even exceeded the cost of housing construction!
In 1400, the municipality increased the rate of construction tolls by a sudden jump and increased the range of tolls for each square meter of a residential unit in different areas of Tehran to about one million and one million and 300 thousand tomans to 2 million tomans. In other words, the cost of construction tolls for a 100-meter apartment in the central and southern regions of Tehran is between 100 to 130 million Tomans and in the northern regions of the capital is about 200 million Tomans. For the northern regions, it is estimated at about 3%, but in reality, the amount of tolls imposes a heavy cost on the pockets of home buyers.
Iraj Rahbar, vice president of the Tehran Mass Builders Association, told Eqtesad Online that at present the average construction cost has reached about 8 to 10 million tomans per square meter, although a significant share of the construction cost is related to construction tolls. It is a municipality.
Mohammad Ali Pourshirazi, a member of the board of directors of the Iranian Mass Builders Association, also told Eqtesad Online that the heavy costs of housing construction are devouring all the mortgages of Tehran citizens and reducing their purchasing power in the housing market. So that if a person wants to buy a 100-meter apartment, a figure of nearly 100 million tomans of the total price of housing will go to the municipality.
Asghar Makhlouqi, a construction industry expert, told Mehr that at present, in some areas of Tehran, including District 6 of the capital, the building permit fees received by municipalities have exceeded the construction cost and reached 10 million Tomans per square meter.
Curbing inflation is the solution to save the housing market
“The problem is not municipal taxes, the main problem is inflation,” Baitullah, Sattarian, a housing economist, told the online economy: Not surprisingly, in these countries the toll rate is floating and is determined by the state of the housing market. For example, in a situation similar to the current situation in the world where the corona has slowed down economic growth and reduced the purchasing power of the people, one of the policies of world governments is to reduce such tariffs and taxes so that customers’ purchasing power is not further weakened. .
He continues: “However, the root of the high figure of construction tolls in Iran should be sought in double-digit inflation, which has troubled many markets and increased costs.”
The housing economist emphasizes: “Even if we assume that the municipality eliminates construction tolls, it will still not have much impact on the housing market, as long as Iran is one of the few countries in the world with double-digit inflation and experiences significant liquidity growth.” He says housing prices will also be affected.
Satarian also adds: “The best way to control prices in the housing market is for the government to control inflation.” Because this action not only weakens the profit motive in the housing market, but also increases the demand for housing and stimulates supply, and in fact, by controlling inflation, the housing market will be regulated automatically.
Source: Online Economy