Tehran Monthly Home Deals Up 134%

EghtesadOnline: A total of 9,537 homes were sold in Tehran during the ninth month of the current fiscal year (Nov. 22-Dec. 21) to register a 134.7% rise compared with the previous month.

News ID: ۷۴۹۳۶۶

05 January 2020

The number of home sales in the capital city rose by 40% compared with last year's similar month.

The average price of each square meter of a residential unit in Tehran stood at 135.25 million rials ($1,044) during the month under review, indicating an 8.5% increase compared with the preceding month, Financial Tribune reported.

As compared to the same month last year, average prices showed a surge of 41.6%, the Central Bank of Iran reported.

Newly-built residential units up to five years old grabbed the highest proportion of the total number of deals with 42.6%, down by 0.8 percentage points compared with the same month of last year.

That lost share was added to homes with a lifespan of six to 10 years and those between 16 and 20 years. These accounted for 19.3% and 15.7% of total deals respectively.

The share of home deals 11 to 15 years old decreased from 13.9% of the total deals in last year’s same month to 12.8% this year. Homes above 20 years posted a share of 9.7% of total deals, compared with 11.2% of the same month of last year.

The distribution of the dealt properties shows that among Tehran's 22 districts, District 5 grabbed the highest share of total deals at 16.7%. It was followed by districts 4 and 2 with a respective share of 9.4% and 9.1% respectively.

All-in-all, 10 districts (five, four, two, 10, 14, seven, eight, 15, 11 and one) grabbed the lion's share of the deals at 74.1% with the remaining 12 districts holding a 25.9% share.

Among Tehran's 22 districts, District 1 registered the highest average home price of 310.4 million rials ($2,396) per square meter. District 18 offered the capital city's cheapest homes with average per-square meter price standing at 65.1 million rials ($502). The aforesaid numbers show a respective increase of 42.3% and 55% YOY.

Residential units with an average price range of 90 million rials ($694) to 105 million rials ($810) per square meter registered the highest demand, as they grabbed a 12.1% share of all deals.

They were followed by units priced at 75 million rials ($579) to 90 million rials ($694) per square meter and those priced at 105 million rials ($810) to 120 million rials ($926) per square meter with a share of 11.3% and 10.5%, respectively.

From the total number of deals, 59.4% belonged to homes cheaper than the average per-square meter price of the city (i.e. 135.25 million rials or $1,044).

Residential units with a floor area of 50-60 square meters registered the highest number of deals with a 16% share of total deals.

Units with an area of 60-70 square meters and 70-80 square meters came next with a respective share of 14.8% and 12.4%, respectively. Units with an area of less than 80 square meters had a 56.7% share of total deals.

CBI data further show Tehran’s homes worth between 3 billion rials ($23,166) to 4.5 billion rials ($34,749) showed the highest demand with a 13.2% share of total deals.

Homes with price tags of between 4.5 billion rials and 6 billion rials ($46,332) and those between 6 billion and 7.5 billion ($57,915) came next with a respective share of 12.4% and 11.2% of total deals. Collectively, homes valued under 9 billion rials ($69,498) had a 51.2% share of total home deals.

Nine-Month Perspective and Urban Tenancy

During the ninth month of the current Iranian year that started on March 21, the number of home deals in Tehran totaled 49,408, which is 49.5% less on a year-on-year basis.

In the same period, the average price of each square meter of a home in Tehran stood at about 127.76 million rials ($986), signaling a year-on-year surge of 69.5% compared with the nine-month period of last year.

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 in Iran increased by 28.2% and 30.1% respectively during the ninth month of the current year compared with the similar month of last year.