Tehran Home Sales Pick Up After Months of Decline

EghtesadOnline: The Central Bank of Iran's latest report on property sales in Tehran shows the number of home deals made in the capital city rose in the seventh month of the current Iranian year that ended on Oct. 22 after months of decline.

News ID: ۷۴۸۸۲۴

30 October 2019

A total of 3,401 homes were sold in the capital during the seventh month of the current fiscal year, registering a 22% rise compared with the preceding month. They saw a year-on-year decline of 63.7% compared with the 9,357 deals in the corresponding month of last year.

Data published by CBI on its website also indicate that the average price of each square meter of a residential unit in Tehran stood at 127.15 million rials ($1,135) during the month under review, showing a surge of 47.7% over last year’s same month as average prices were registered at 86.1 million rials ($768) then.

Home prices in the capital city increased by 0.4% compared to 126.67 million rials ($1,130) in the sixth month of the current year, Financial Tribune reported.

Details of Property Deals

The CBI data also show that during the month ending Oct. 22, newly-built residential units up to five years old constituted the highest proportion of the total of 3,401 deals at 41.9% (or 1,426 deals), down by 2.6 percentage points compared with the same month of last year.

That lost share was added to homes six to 10 years old and those above 15 years. Homes with a lifespan of six to 10 years and 16 to 20 years accounted for 19.6% and 15.3% of total deals respectively.

The share of deals involving homes that were 11 to 15 years old also decreased from 14.6% of the total deals of last year’s same month to 12.6% this year. Homes above 20 years posted a share of 10.5% of total deals, compared with 10.3% of 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 15.1%. It was followed by districts 2 and 4 with a respective share of 9.1% and 7.9%.

All-in-all, 10 districts (five, two, four, 10, seven, 15, one, 14, eight and six) grabbed the lion's share of the deals at 70.8% with the remaining 12 districts holding a 29.2% share.

Among Tehran's 22 districts, District 1 registered the highest average home price of 269.7 million rials ($2,408) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 55.2 million rials ($492). The aforesaid numbers show a respective increase of 43.7% and 52.7% YOY.

Residential units with an average price range of 75 million rials ($669) to 90 million rials ($803) per square meter were the most popular in Tehran during the Iranian month under review, as it grabbed an 11.9% share of all deals.

They were followed by units priced at 60 million rials ($535) to 75 million rials per square meter and those priced at 90 million rials to 105 million rials ($937) per square meters with a share of 11% and 10.4%, respectively.

From the total number of deals, 58.3% belonged to homes cheaper than the average per-square meter price of the city (i.e. 127.15 million rials or $1,135).

Residential units with a floor area of 50-60 square meters registered the highest number of sales with a 14.2% share of total deals.

Units with an area of 60-70 square meters and 40-50 square meters came second and third with shares of 13.2% and 11.8% respectively. All-in-all, units with an area of less than 80 square meters had a 54.5% share of total deals.

CBI data further show that Tehran’s homes worth between 3 billion rials ($26,785) and 4.5 billion rials ($40,178) were the most popular with a 15.6% share of total deals.

These were followed by homes with a price tag of between 4.5 billion rials and 6 billion rials ($53,571) and those between 6 billion and 7.5 billion ($66,964) with a respective share of 11.8% and 9.7% of total deals.

Collectively, homes valued under 9 billion rials ($80,357) had a 53.6% share of total home deals in Tehran during the seventh month of the current year.

Seven-Month Perspective

During the seven months of the current Iranian year that started on March 21, the number of home deals finalized in Tehran totaled 35,807, which figure shows a 57.5% decline year-on-year.

In the same period, the average price of each square meter of a home in the capital stood at 127.14 million rials ($1,135), signaling a YOY surge of 81.3% compared with the seven months of last year.

Tenancy in Urban Areas

The central regulator also reports 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 34.8% and 33.2% respectively during the seventh month of the current year compared with the similar month of last year.