Tehran Home Prices, Sales Dip for 2nd Month in Row

EghtesadOnline: The number of property deals, together with home prices in Tehran decreased, for the second consecutive month, in the sixth month of the current Iranian year that ended on Sept. 22 compared with the previous month, according to the Central Bank of Iran.

News ID: ۷۴۸۵۷۴

30 September 2019

Data published by CBI on its website indicate that the average price of each square meter of a residential unit in Tehran stood at 126.67 million rials ($1,116) during the month under review, showing a surge of 56.5% over last year’s same month when average prices reached 80.95 million rials ($713) then.

Home prices in the capital city declined by 2.8% compared to 130.25 million rials ($1,147) in the fifth month of the current year.

A total of 2,787 homes were sold in the capital during the sixth month of the current fiscal year, signaling a year-on-year decline of 73% compared with 10,335 deals in the corresponding month of last year, Financial Tribune reported.

The number of property deals fell by 15.3% compared with the preceding Iranian month.

Details of Property Deals

Data published by CBI on its official news website indicate that during the month ending Sept. 22, new residential units up to five years old grabbed the highest proportion of the total of 2,787 deals at 40.8% (or 1,136 deals), down by three percentage points compared with the same month of last year.

The lost share was added to homes six to 10 years old and homes above 15 years. Homes with a lifespan of six to 10 years and those between 16 and 20 accounted for 19.7% and 15.9% of total deals respectively.

The share of deals for homes 11 to 15 years old has also decreased from 14.9% of the total deals of last year’s same month to 12.7% this year. Homes above 20 years posted a share of 10.9% of total deals, compared with 10.8% in the same month of last year.

The distribution of dealt properties shows that among Tehran's 22 districts, District 5 grabbed the highest share of total deals at 15.4%. It was followed by districts 2 and 10 with a respective share of 8.5% and 8.4%.

All-in-all, 10 districts (five, two, 10, four, seven, 14, eight, one, 11 and three) grabbed the lion's share of the deals at 72.2% with the remaining 12 districts holding a 27.8% share.

Among Tehran's 22 districts, District 1 registered the highest average home price at 250.4 million rials ($2,206) per square meter. District 19 offered the capital city's cheapest homes with average per-square meter prices standing at 56.8 million rials ($500). The aforesaid figures show a respective increase of 42.3% and 46.5% YOY.

Residential units with an average price range of 75 million rials ($660) to 90 million rials ($792) per square meter were the most popular in Tehran during the Iranian month under review, as it grabbed an 11.8% share of all deals.

They were followed by units priced at 90 million rials to 105 million rials ($925) per square meter and those priced at 60 million rials ($528) to 75 million rials per square meters with a share of 10.5% and 9.8%, respectively.

From the total number of deals, 56.1% belonged to homes cheaper than the average per-square meter price of the city (126.7 million rials or $1,116).

Residential units with a floor area of 50-60 square meters registered the highest number of deals with a 15.7% share of total deals.

Units with an area of 60-70 square meters and 70-80 square meters ranked second and third with a share of 14.4% and 11.5% respectively. All-in-all, units with an area lower than 80 square meters had a 56.3% share of total deals.

CBI data further show that homes in Tehran worth between 3 billion rials ($26,431) to 4.5 billion rials ($39,647) were the most popular with a 15.6% share of total deals.

Homes with price tags of between 4.5 billion rials and 6 billion rials ($52,863) and those between 6 billion and 7.5 billion ($66,079) came next with a share of 12.6% and 9.3% of total deals. Collectively, homes valued under 9 billion rials ($79,295) had a 53.9% share of total home deals in Tehran during the sixth month of the current year.

Six-Month Perspective

During the six months of the current Iranian year that started on March 21, the number of home deals finalized in Tehran totaled 32,406, which figure was down 56.7% YOY.

In the same period, the average price of each square meter of a home in the capital stood at about 127.14 million rials ($1,120), signaling a YOY surge of 88.4% compared with the six months of last year.

Tenancy in Urban Areas

The central regulator also reports on changes to 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 in Iran increased by 31.4% and 29.8% respectively during the sixth month of the current year compared with the similar month of last year.