Tehran Home Deals Up 12.1% While Prices Increase 2.1%

EghtesadOnline: A total of 10,687 homes were sold in Tehran during the 10th month of the current fiscal year (Dec. 22, 2019-Jan. 20) to register a 12.1% rise compared to the month before.

News ID: ۷۴۹۵۷۳

01 February 2020

The number of home sales in the capital city rose by 59% compared to last year's similar month, the Central Bank of Iran reported.

The average price of each square meter of a residential unit in Tehran stood at 138.09 million rials ($1,022) during the month under review, indicating a 2.1% increase compared with the preceding month, according to Financial Tribune.

Compared with the same month of last year, average prices showed a surge of 40.9%.

Newly-built residential units—those up to five years old—grabbed the highest proportion of the total number of deals with 41.8%, down by 1.6 percentage points compared with the same month of last year.

The lost share was added to homes six to 10 years old and those between 16 and 20 years. Homes that were six to 10 years old and those between 16 and 20 years accounted for 19.4% and 16.9% of total deals respectively.

The share of deals for homes with a lifespan of 11-15 years decreased from 13.8% of the total deals in the last year’s same month to 12.6% this year. Homes above 20 years old posted a share of 9.3% 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 16.3%. It was followed by districts 2 and 4 with a respective share of 9.4% and 9.2%.

All-in-all, 10 districts (five, two, four, 10, 14, eight, seven, 15, three and 11) grabbed the lion's share of the deals at 73.8% with the remaining 12 districts holding a 26.2% share.

Among Tehran's 22 districts, District 1 registered the highest average home price of 301.6 million rials ($2,234) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 65.3 million rials ($484). These numbers show a respective increase of 30.5% and 55.3% YOY.

Residential units with an average price range of 90 million rials ($666) to 105 million rials ($777) per square meter were the highest in demand, as they grabbed an 11.6% share of all deals.

They were followed by units priced at 105 million rials to 120 million rials ($888) per square meter and those priced at 75 million rials ($555) to 90 million rials per square meter with a share of 10.8% and 10.3%, respectively.

From the total number of deals, 57.9% belonged to homes cheaper than the average per-square meter price of the city (i.e. 138.09 million rials or $1,022).

Residential units with a floor area of 60-70 square meters registered the highest number of deals with a 15.2% share of total deals.

Units with an area of 50-60 square meters and 70-80 square meters came next with a respective share of 14.5% and 12.6%, respectively. All-in-all, units with an area of less than 80 square meters had a 55.9% share of total deals.

CBI data further show that Tehran’s homes worth between 3 billion rials ($22,222) to 4.5 billion rials ($33,333) were highest in demand with a 13% share of total deals.

Homes with price tags of between 4.5 billion rials and 6 billion rials ($44,444) and those between 6 billion to 7.5 billion ($55,555) came next with a respective share of 12.1% and 10.8% of total deals. Collectively, homes valued under 9 billion rials ($66,666) had a 48.5% share of total home deals.

10-Month Perspective

During the first 10 months of the current Iranian year (started March 21), the number of home deals in Tehran totaled 60,095, 42.6% fewer on a year-on-year basis.

In the same period, the average price of each square meter of a home in the capital stood at about 128.8 million rials ($954), signaling a year-on-year surge of 65.9% compared with the 10-month period of last year.

Tenancy in Urban Areas

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

According to the CBI report, the price of rented residential units in Tehran and across all urban areas in Iran increased by 29% and 30.9% respectively during the 10th month of the current year compared with the similar month of last year.