Tehran Home Sales Increase

EghtesadOnline: The total number of housing deals in Tehran reached 18,400 during the 11th Iranian month to Feb. 19, registering a 17.7% increase compared with the same month of last year, the Central Bank of Iran announced.

News ID: ۷۴۵۰۶۲

26 February 2018

In its latest monthly housing report published on its website that employs data from the Tenement Management Information System, the regulator also reviews the volume of home deals divided by the unit's age, price changes, 11-month development in housing deals and rents.

The entity in charge of publishing official economic statistics notes that from a total of 18,392 units transacted in the 11th month, new units with an age of up to five years grabbed the highest share at 48.7% or 8,955, followed by units aged 11-15 years and 6-10 years with a respective share of 14.7% and 14.1% or 2,708 and 2,598.

Compared with the same month of last year, the newly-built units' share contracted the most, as they reached 53.9%. Units aged 6-15 years also had their shares reduced, all of which was transferred to units aged 16 years or higher, according to Financial Tribune.

The CBI data show that among Tehran's 22 districts, District 5 boasted the highest share of all home deals at 13%, whereas districts 4 and 2 followed with a respective share of 11.1% and 9.6%. Overall, 10 districts grabbed the lion's share of the deals at 73.3%.

The average price of 1 square meter of residential unit dealt through Tehran's real-estate agents was equal to 55.1 million rials ($1,230) during the 11th month, which is indicative of a respective increase of 5.1% and 22.3% compared with the previous month and the same month of last year.

District 5 had the highest average increase in home prices at 37.8% when compared with last year and the lowest price hike pertained to District 20 with 12.6%.

The most expensive area in Tehran was once more the northern District 1 with an average of 115.4 million rials ($2,575) while District 18 was the cheapest with an average of 24.3 million rials ($543) per square meter.

The total residential deals registered during the 11 months to Feb. 19 equaled 168,933, which indicate an increase of 12.8% compared with the same period of last year. During this period, the average price of 1 square meter of a home in Tehran stood at 48.2 million rials ($1,075) to signify a 10.1% year-on-year increase.

In reviewing changes to rent indicators in the capital city, the central bank notes that rents increased by 10.5% and 9.3% respectively when compared with prices in Tehran and urban areas across the country.

As rents are highly susceptible to policies for controlling inflation, rents have continued to rise in line with the inflation rate.

The average goods and services Consumer Price Index for urban areas in the 12 months ending Feb. 19 increased by 9.9% compared with last year’s corresponding period, CBI announced on Saturday.