Iran: Tenancy Costs Rise 11.8% (June-Sep 2018)

EghtesadOnline: Costs of renting a residential unit across all urban areas increased during the second quarter of the current fiscal year that ended on Sept. 22, according to the latest data released by the Central Bank of Iran.

News ID: ۷۴۶۱۷۲

31 October 2018

Based on the latest figures disclosed on the official website of the monetary regulator, the residential rent index of all urban areas across Iran reached 118.8 during the second quarter of the current year, up by 3.6% and 11.8% compared with the first quarter of the current year and the second quarter of the year before respectively.

A year before, the index stood at 106.3 in Q2, which was higher by 1.7% and 7.4% compared to Q1 and Q2 of the fiscal 2016-17.

During the 12 months up to the end of the current year's Q2, the urban tenancy index indicated a rise of 9.9% compared with the preceding year's corresponding period, according to Financial Tribune.

From a six-month perspective, the index registered a 10.8% hike compared to the first half of the year before.

Major Cities

In major cities across Iran, the residential rent index reached 119 during the second quarter, up 3.8% and 11.9% compared with the first quarter of the current year and the second quarter of the year before respectively.

The tenancy index stood at 106.3 during the second quarter of the year before in major cities, which was 1.8% and 7.3% higher when compared with the first quarter of the year before and the second quarter of the fiscal 2016-17 respectively.

CBI data indicate that during the 12 months up to the end of the first half of the current fiscal year, the rent index grew by 9.9% in major cities compared with last year's corresponding period. During the first half of the current year, the index in major cities signaled a year-on-year increase of 10.9%.

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 are considered major cities in the CBI data.

Medium Cities

In medium-sized cities, the tenancy index reached 117.8 during the second quarter of the current year. The figure was higher by 2.8% and 10.1% compared with the current year's Q1 and the previous year's Q2 respectively.

During the Q2 of the previous year, the index stood at 107, indicating a respective increase of 1.8% and 8.2% when compared to the previous three months and the three months of the second quarter of the fiscal 2016-17 respectively.

During the 12 months up to this year's Q2, the residential rental index indicated a 9.3% increase in medium-sized cities.

According to CBI, the index for this category showed a hike of 9.6% during the first half of the current year on an annual basis.

CBI's data consider Ilam, Abadan, Babol, Bojnourd, Boroujerd, Bandar Anzali, Bandar Bushehr, Birjand, Torbat Heydarieh, Jahrom, Khoy, Dezful, Rafsanjan, Zabol, Saveh, Sabzevar, Saqez, Semnan, Shahreza, Shahr-e Kord, Kazeroun, Kashan, Gonbad-e Kavus, Maragheh, Malayer, Mahabad and Yasuj as medium-sized cities.

Small Cities

Across the small cities of Iran, the residential rent index reached 120.8 during the second quarter of the current year, which was 3.2% and 12.9% higher when compared to the first quarter of the current year and the second quarter of the year before.

During last year's Q2, the index had stood at 107, up by 1.4% and 8.3% when compared with that year's Q1 and the previous year (fiscal 2016-17)'s Q2.

In small cities, the residential tenancy index grew by 11% in the 12 months up to the end of the sixth month of the current fiscal year. During the initial half of the current year, the index showcased a year-on-year rise of 12%.

Abhar, Ardakan, Eqlid, Aligoudarz, Ahar, Borazjan, Boroujen, Bam, Behbahan, Behshahr, Takestan, Tonekabon, Tueyserkan, Chalous, Khalkhal, Darab, Damghan, Dogonbadan, Dehloran, Sarab, Sonqor, Shirvan, Qaen, Golpayegan, Lahijan, Maku and Minab are considered small cities in CBI's categorization.

The central bank uses the fiscal 2016-17 as the base year for all calculations.