Iran: Housing Prices, Rents Continue to Rise as Number of Deals Declines

EghtesadOnline: The Statistical Center of Iran has published a new report on home and land prices, as well as rents across urban areas of the country during the first quarter of the current Iranian year (March 21-June 21), which indicates an all-round increase both compared to the previous quarter and to the corresponding quarter of the year before.

News ID: ۷۴۸۵۲۲

24 September 2019

The number of property deals, however, except for land, registered a decline.

According to the report, published on the website of SCI, the average price of each square meter of land or land of a rundown residential property (old units where only the underlying land is useful for construction) went up by 148.6% in Q1 compared with the corresponding period of last year.

Prices increased by 16.1% compared with the preceding quarter (Q4 of last Iranian year from Dec. 22, 2018, to March 20, 2019), according to Financial Tribune.

The minimum price of each square meter of land or land of a rundown property stood at 549,000 rials ($4.8) while the maximum was at 721.31 million rials ($6,327), bringing the average to 33.25 million rials ($291).

The report also shows that the number of land deals in Q1 increased by 31.6% compared with the similar period of last year and 0.4% compared with Q4 of last year.

The average area of each land dealt by real estate agencies was reportedly 265 square meters, while the average price of each square meter of residential floor area surged by 82.2% in Q1 on a year-on-year basis.

Compared with the previous quarter, prices registered a 20.7% growth.

The minimum price of each square meter of residential floor area in Q1 stood at 1.06 million rials ($9.29,) with the maximum price registered at 668.18 million rials ($5,802). As a result, the average price was about 35.31 million rials ($309).

In terms of the number of residential deals, the current year’s Q1 saw a decline of 24.6% compared with Q1 of last year.

Against last year’s Q4, the number of home deals saw a decline of 13.2%.

SCI put the average dealt floor area at 106 square meters while putting the average age of residential units at 12 years.

As for rents, the average prices increased by 29.1% in the current year’s Q1 compared with Q1 of last year while they grew by 13.9% compared with the fourth quarter of last year.

The minimum price of each square meter of residential floor area rented in cities stood at 2,222 rials (1.9 cents) with the maximum being 2.2 million ($19.2), bringing the average to 126,522 rials ($1.1) per month.

Compared with the first quarter of last year, the current year’s first quarter rent deals decreased by 11.3% whereas they increased by 17.4% compared with the preceding quarter.

SCI reported the average area of total rent deals at 98 square meters and put the average age of rental homes at 13 years.

All figures reported by SCI employ data extracted from the state-run Tenement Management Information System operated by the Ministry of Roads and Urban Development.

Established with the aim of making home purchase and renting deals more transparent, the system legally requires all certified real estate agencies to register their deals.

In light of the fact that sudden changes in the number of deals in major cities lead to a significant change in prices across a province or the whole country, the report uses a balanced weighted average for its reports to identify real price changes by eliminating the effect of home deals. The related weights used were based on occupied residential units surveyed during a general census conducted in the fiscal 2015-16.