Iran Housing Rent Index Grows

EghtesadOnline: The Central Bank of Iran has released its latest report on the index of housing rent across the country for the fourth quarter of the previous fiscal year (ended March 20, 2018), which shows an increase in all categories.

News ID: ۷۴۵۲۹۴

13 May 2018

According to the report published on the regulator’s official website, the housing rent index for Iran’s urban areas reached 112.6 during the aforementioned period, which was 2.7% and 9.3% higher when compared with the previous quarter and the corresponding period of the year before.

The index stood at 104.5, 106.3 and 109.6 during the first three quarters of the previous fiscal year respectively, bringing the average index of the year to 108.3.

The average housing rent index for the whole of fiscal 2017-18 grew by 8.3% compared with the average of the year before, which was 100.0, according to Financial Tribune.

During the fiscal 2016-17, the fourth quarter had signaled a rise of 2% and 8.5% when compared with the third and fourth quarters of the year before across all urban areas.

Major Cities

In major cities, namely Tehran, Arak, Ardabil, Urmia, Eslamshahr, Isfahan, Ahvaz, Bandar Abbas, Tabriz, Khorramabad, Rasht, Zahedan, Zanjan, Sari, Sanandaj, Shiraz, Qazvin, Qom, Karaj, Kerman, Kermanshah, Gorgan, Mashhad, Hamedan and Yazd, the index rose to 112.5 during the Q4 of last year.

The number was 2.7% and 9.4% higher in comparison with Q3 of the same year and Q4 of the year before. That is while in the fiscal 2016-17, the index had grown by 1.9% and 8.4% during the Q4 compared with Q3 and the previous Q4.

During the last quarter of the fiscal 2017-18, the average of housing rent index for major cities recorded a year-on-year hike of 8.2%.

Medium-Sized Cities

Concerning medium-sized cities, the housing rent index was recorded at 112.9 in last year’s Q4, which was 2.5% and 9.3% higher when compared with the previous quarter and the same quarter of the year before.

This is while the housing rent index of this category for the fourth quarter of the fiscal 2016-17 was registered at 102.8, which was higher by 1.9% and 8.4% when compared with the same year’s Q3 and Q4 of the year before.

The average housing rent index of medium-sized cities for the whole of fiscal 2017-18 registered an annual increase of 8.8%.

Abadan, Ilam, Babol, Bojnourd, Boroujerd, Bandar Anzali, Bushehr, Birjand, Torbat-e Heydarieh, Jahrom, Khoy, Dezful, Rafsanjan, Zabol, Saveh, Sabzevar, Semnan, Saqqez, Shahr-e Kord, Kazeroun, Kashan, Gonbad-e Kavous, Maragheh, Malayer, Mahabad and Yasouj are medium-sized cities.

Small-Sized Cities

According to the central bank, the last quarter of the previous fiscal year saw the housing rent index of small-sized cities go as high as 114.7, which was 3.5% and 10.6% higher when compared with the previous quarter and the same quarter of the year before.

In the fiscal fourth quarter of 2016-17, small-sized cities’ housing rent index had reached 103.7 and that number indicated a hike of 2.5% and 8.9% when compared with Q3 of the same year and Q4 of the year before.

For this category, the CBI noted that a year-on-year average index growth rate of 9.5% was registered by the end of the fiscal 2017-18.

Abhar, Aligudarz, Eqlid, Ardakan, Ahar, Borazjan, Boroujen, Bam, Behbahan, Behshahr, Takestan, Tonekabon, Chalous, Khalkhal, Darab, Damghan, Dogonbadan, Dehloran, Sarab, Sonqor, Shirvan, Qaen, Golpayegan, Lahijan, Maku and Minab are considered small-sized cities.

All Provinces

As the CBI report outlines, “the housing rent index increased in all the [31] provinces of the country” during the final quarter of the previous year compared with the third quarter.

The most notable increases were registered in Kohgilouyeh-Boyerahmad Province at 5.9% and in Zanjan Province at 4.4%. On the other side of the spectrum, West Azarbaijan and Ardabil provinces registered the lowest rise in index at 1.4% and 1.7% respectively.

Tehran’s statistics indicate that its index reached 113.8 during last year’s Q4, which was higher by 3.1% and 10.4% when compared with the Q3 and Q4 of the year before.

During the fiscal 2016-17, the housing rent index of Iran’s capital city stood at 103.1, marking an increase of 2.1% and 9.2% compared with the previous quarter and the same quarter of the year before.

A look at CBI’s numbers for previous years, which track the index beginning from the fiscal 1990-91, shows that the fiscal 1996-97 registered the highest year-on-year surge in the housing rent index across all urban areas at 34.9% while the lowest annual increase of 6% in the same category was recorded during the fiscal 2010-11.

All numbers are calculated while considering the fiscal 2016-17 as the base year.