Home Prices, Rents Hike in Tehran

EghtesadOnline: The Statistical Center of Iran has released the latest housing data for Tehran, which indicate a significant annual and seasonal hike in prices, rents and deals, manifesting an uptick in the housing sector.

News ID: ۷۴۵۳۱۸

19 May 2018

According to SCI’s report published on its official website, the minimum and maximum prices for each square meter of land or dilapidated residential properties in Tehran stood at more than 7.37 million rials ($176) and more than 266.66 million rials ($6,350) during the final quarter of the previous year to March 20, 2018.

This brings the average price of each square meter of land or dilapidated residential properties in Iran’s capital city during the period to more than 59.92 million rials ($1,427), which was higher by 13.6% when compared with the third quarter of the previous fiscal year to Dec. 21, 2017, and higher by 33.5% when compared with the fourth quarter of the year before.

This is while the number of deals for the aforementioned properties jumped by a respective 37.7% and 41% when compared with Q3 of last year and Q4 of the year before, Financial Tribune reported.

The center puts the average area of each land or dilapidated residential properties sold in Tehran during last year’s Q4 at 276 square meters.

As SCI’s report indicates, the minimum price of each square meter of a residential unit’s floor area in Tehran during last year’s Q4 was equal to more than 6.15 million rials ($147) while the maximum price stood at more than 378.53 million rials ($9,013), bringing the average to more than 58.71 million rials ($1,398).

When compared with Q3 of the previous fiscal year, the average price for the sale of each square meter of a residential unit’s floor area in Tehran grew by 14.8% while its annual growth rate stood at 33.2%.

According to the center, each unit sold in Tehran in this category during last year’s final quarter had an average age of 11 years.

Rents

In the final part of its report, SCI disclosed the value of monthly rent prices in addition to 3% paid as collateral for renting one square meter of residential floor area in Tehran.

According to the center, the minimum amount of rent for the aforementioned category stood at 25,000 rials ($0.6) while the maximum price was more than 1.43 million rials ($34.5), which brought the average to 281,971 rials ($6.72).

The average rent signaled an increase of 9% when compared with Q3 of the previous fiscal year and an increase of 26.6% when compared with Q4 of the year before.

The number of deals in this category, however, showcased both seasonal and annual declines. When compared with the previous quarter, the number of rent deals declined by 6.7% during the fourth quarter of the previous fiscal year while the number of deals registered a 17.2% fall compared with the same quarter of the year before.

All the data disclosed in the report were mined from the Tenement Management Information System that obligates real estate dealers in major cities, mainly Tehran, to register details of their deals in the system.

“Since a decrease or increase in the volume (number) of deals in Tehran’s districts leads to a major decrease or increase in the average (calculative) price across the city, this report uses a balanced (weighted) average in which the weight is calculated by employing the share of residential units that are not vacant so that real price changes can be identified by eliminating the effect of the volume of home deals,” SCI concluded.