SCI Scrutinizes Iranian Urban Real-Estate Deals in 3 Months

EghtesadOnline: Statistical Center of Iran has published its latest report on home and land prices as well as rents in Iran's urban areas during the first quarter of the current fiscal year (March 20-June 20), the spring season of the fiscal 2020-21.

News ID: ۷۵۱۰۲۱

19 September 2020

According to the report published on SCI’s website, the average price of each square meter of land or land of a rundown residential property (residential units that are considered old to a degree that only the underlying land is useful for construction) in Iranian cities went up by 71.8% during Q1, compared with the corresponding period of the year before. Prices increased by 22.1% compared with the preceding quarter (Q4 of last Iranian year.)

The minimum price of each square meter of land or land of a rundown property in the capital city stood at 1 million rials ($3.7) while the maximum was at 920 million rials ($3,417), bringing the average to 57.14 million rials ($212).

The number of land deals in Q1 decreased by 3.5% compared with the similar period of last year, but increased 5.3% when compared with Q4 of last year.

The average area of each dealt land or land of a rundown property in real-estate agencies across Iranian cities was reportedly 236 square meters.

The report also shows the average price of each square meter of residential floor area in urban areas surged by 62.7% in Q1 on a year-on-year basis. When compared with the previous quarter, prices indicated a growth of 18.6%.

The minimum price of each square meter of residential floor area across urban areas during Q1 stood at 2.46 million rials ($9.13) while the maximum price reached 902.31 million rials ($3,351). The average price was 57.46 million rials ($213).

In terms of the number of deals for residential floor areas, the current year’s Q1 saw a decline of 18.7% compared with the Q1 of last year. Against Q4 of last year, the number of such deals registered a decrease of 21.4%.

SCI put the average dealt floor area at 107 square meters while putting the average age of residential units at 12 years. It also disclosed figures for monthly home rents plus 3% collateral legally paid to rent 1 square meter of residential floor area.

It reported that the average rent prices increased by 36.1% during the current year’s Q1 compared with the Q1 of last year and 7.2% compared with the fourth quarter of last year.

The minimum price of each square meter of residential floor area rented in the Iranian cities stood at 2,083 rials (0.77 cents) with the maximum registered at 3 million rials ($11.14), bringing the average to 172,230 rials (64 cents) per month.

Compared with the first quarter of last year, the current year’s Q1 rent deals decreased by 34.3%, but they increased by 37.2% when compared with the preceding quarter.

SCI reported the average area of total rent deals at 100 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.

As sudden changes in the number of deals in major cities led 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.