Tehran Home Sales Down 36%, Prices Soar 112 Percent YOY

EghtesadOnline: Home prices in Tehran increased while the number of property deals declined in the second month of the current Iranian year, which ended on May 21, according to the Central Bank of Iran.

News ID: ۷۴۷۴۷۶

02 June 2019

Data published by CBI’s website on Saturday indicate that a total of 12,128 homes were sold in the capital during the second month of the current fiscal year, signaling a year-on-year decrease of 36.5% compared with the 19,107 deals signed in the corresponding month of last year.

The number of property deals jumped by 254.3% compared with the preceding month.

The average price of each square meter of a residential unit in Tehran stood at about 126.72 million rials ($908) during the second month of the year, showing a year-on-year surge of 112% as average prices reached 59.78 million rials ($428) in last year’s same month, Financial Tribune reported.

Home prices in the capital grew by 12.5% compared with 112.69 million rials ($807.8) in the first month of the current year.

Details of Property Deals

The CBI data indicate that during the month under review, newly-built residential units up to five years old grabbed the highest share of the total number of deals with 4,975 or 41%, down by 2.9% compared with the same month of last year.

The lost share was added to homes that were six to 10 years old and those ranging from 16 to 20, which registered a respective share of 18.1% and 17.2% from the total number of deals.

The share of deals involving homes above 20 years decreased from 10.3% of the total deals last year to 11.1% this year, which constituted the smallest share of total deals in the month. Homes between 11 and 15 years posted a share of 12.6% of total deals.

The distribution of dealt properties shows that among Tehran's 22 districts, District 5 grabbed the highest share of total deals at 16.6%. It was followed by districts 2 and 4 with a respective share of 9.6% and 9.2%.

All-in-all, 10 districts (one, two, three, four, five, seven, eight, 10, 14 and 15) grabbed the lion's share of the deals at 72.8% with the remaining 12 districts holding a 27.2% share.

District 9 showed the highest average annual price growth at a whopping 134% during the second month of the current year. District 19 saw the lowest year-on-year average price hike at 84.5%.

Among Tehran's 22 districts, District 1 registered the highest average home prices at 260.2 million rials ($1,865) per square meter. District 18 offered the capital city's cheapest homes with average per-square meter prices standing at 59.1 million rials ($423.6). The above numbers show a respective increase of 107.4% and 117.9% YOY.

Residential units with an average price range of 75 million rials ($537) to 90 million rials ($645) per square meter were the most popular in Tehran, as they grabbed a 10.6% share of all deals in the period.

They were followed by units priced at 60 million rials ($430) to 75 million rials per square meter and 90 million rials to 105 million rials ($752) per square meter with a share of 10.1% and 9.7%, respectively.

From the total number of deals, 54.1% belonged to homes cheaper than the average per-square meter price of the city (126.7 million rials or $908).

Residential units with a floor area of 60-70 square meters registered the highest number of deals with a 14.7% share of total deals.

Units with an area of 50-60 square meters and 70-80 square meters ranked second and third with a share of 14.1% and 11.9% respectively. All-in-all, units with an area below 80 square meters had a 53.3% share of total deals.

CBI data further show that Tehran’s homes valued at between 3 billion rials ($21,505) and 4.5 billion rials ($32,258) were the most popular with a 14.2% share of total deals.

Homes with a price tag of between 4.5 billion rials and 6 billion rials ($43,010) and between 6 billion rials and 7.5 billion rials ($53,763) came next with a respective share of 11.1% and 9.7% of total deals. Collectively, homes valued under 9 billion rials ($64,516) had a 50.4% share of total home deals in Tehran during the second month of the current Iranian year.

2-Month Perspective

During the first two months of the current Iranian year (March 21-May 21), the number of home deals signed in Tehran totaled 15,551, which was 35.6% lower compared with the two months of last year.

In the same period, the average price of each square meter of a home in the capital stood at about 119.7 million rials ($858), signaling a year-on-year surge of 108.1% compared with the two months of last year.

Tenancy in Urban Areas

The central regulator also reported changes in tenancy prices in the capital and across the country.

According to CBI, the price of rented residential units in Tehran and across all urban areas of Iran increased by 22.6% and 19.7% respectively during the second month of the current year compared with the similar period of last year.