Who are the real estate buyers in Tehran?

According to Tejarat News, the trading market Housing In the first four months of the year, Tehran had the highest return among other economic markets consisting of dollar markets, stock exchanges, foreign exchange, etc. This is while investigations show that a team including a diverse range of demand for buying apartments played a role in the current situation.

the world of economy He wrote, in the first four months of this year, Tehran’s real estate market with a yield of about 22% took the first rank among other markets. At the same time, unlike the previous year, which was the last year and the average monthly housing inflation in the first third of the year was equal to negative 1%, the average monthly housing inflation in the first four months of this year had a noticeable growth of 4.5%.

The studies show the role of the diverse range of consumer and non-consumer demand in the current housing market conditions.

In the first four months of this year, in addition to capital demand, consumer demand has also entered the market and some of them bought apartments. In the southern half of the capital, in addition to capital demand and consumer demand becoming better, traces, albeit limited, of household consumer demand can be observed in housing transactions.

This is despite the fact that in the same period of the previous year, i.e. the first four months of 1400, in the absence of consumer demand and the weakening of capital demand, the average monthly housing inflation reached negative 1%.

The team of real estate transactions in 1401, including capital demand, consumer demand, and a limited group of first-time buyers, have now played the main role in real estate developments in the first 4 months of this year.

Double growth of housing transactions

Based on the latest official statistics published by the central bank regarding the developments in the trading market Housing In the city of Tehran, in July this year, the volume of apartment purchase transactions in the capital reached about twice the number of July last year and grew by around 100%.

The most important reason for this issue is related to the recording of average monthly negative real estate inflation in the first four months of 1400 and the growth of housing purchase demand in the same period of this year.

As mentioned, the average monthly housing inflation in the first four months of last year was recorded as negative 1%. The relative stability of housing prices in the previous year was affected by the loss of investment attractiveness, especially short-term real estate purchases and sales, which led to the withdrawal of buyers from the real estate market.

At the same time, with the intensification of the price jump in the housing market of Tehran since 2018, first the demand for first homes and then the second type of consumer demand, i.e. the demand for conversion to better residential units, were gradually and forcibly pushed to the margins of the market.

Simultaneously with the relative stability in the housing market in the first 4 months of 1400, capital demand, especially short-term investors, also left this market and their presence in the real estate market of Tehran faded.

The most important reason for this issue was the expectation of this group of real estate market actors to move the market towards deflating the real estate bubble. On the other hand, the stability and reduction of capital demand led to the return of a part of the consumer demand to the housing market in the form of a trickle, most of which were the consumer demand that became better properties or people who wanted to sell their unit and buy another unit with better specifications and features. they had.

In this way, last year in the field of housing demand, there was a kind of addition and deletion.

But the conditions in the first four months of this year were different compared to the first four months of last year; In the first 4 months of this year, not only a 22% return was recorded in the housing market, which is the highest rate of return in the asset market, but the average monthly housing inflation was around 4.5%. The most important reason for this issue is related to the return of real estate investors to the housing market under the influence of intensifying inflationary expectations on the one hand and the lack of confidence in other markets under the influence of non-economic middle risks and the possibility of the revival of the JCPOA and the collapse of quick cash markets among investors.

Because the market Housing It is a type of market without risk and with zero cost for landlords, capitalists and investors. A significant number of investors in the current conditions considered this market as preferable to other markets to direct their capital and bought apartments.

Under the influence of this issue, the volume of real estate transactions in Tehran increased by 130% in the first four months of this year compared to the first four months of last year when investors left the market.

In July, the volume of apartment purchase transactions in the capital increased by around 100% compared to July last year. In fact, the most important reason for the faster pace of housing transactions this year compared to last year is the return of investors to this market after 1,400 of them left the property market.

In addition, in the current year, part of the growth of housing transactions, although with a gentler slope than the growth of capital demand, is related to the increase in the demand for consumer purchase of housing, especially in the segment of conversion transactions for better residential units. In the first four months of this year, some traces of house purchases were observed in some southern areas of Tehran.