Tehran House Sales Slump in February

EghtesadOnline: Realtors in Tehran recorded 15,600 residential real-estate deals during the 11th month of the Iranian fiscal year (ended February 18), indicating a 4.5% drop compared with the same period of last year.

News ID: ۷۷۴۲۱۸

27 February 2017

The Central Bank of Iran on Sunday published “Monthly Trends in Tehran Housing Market” for period, based on which the average house price in the city of Tehran reached 45 million rials ($1,190) per square meter, marking a 7.6% growth year-on-year.

Home sales dropped by 6.7% compared with the previous month, whereas the average prices experienced a 0.2% growth during the period.

Houses built within the past five years accounted for 53.9% of the total sales during the period, though newly-built housing units experienced a 9% drop in total sales compared with the previous year, according to Financial Tribune.

CBI data also indicate higher demand for housing units built 16-20 years ago , with a 17.2% growth in total deals year-on-year.

Housing units smaller than 80 square meters accounted for more than 51% of the total sales.

CBI claims 61.5% of residential units were sold at prices lower than the average of 45 million rials.

The publication also shows that housing units under 3 billion rials ($79,300) had a 49.2% share in the total number of sold houses.

Neighborhoods

District 5, located in northwest Tehran, solely accounted for 16.2% of total sales during the period. District 4 in northeast and District 2 in northwest followed by accounting for 11.5% and 9.6% of the total deals respectively.

Neighborhoods located in the high-end District 1 remained the most expensive during the one-month period, offering houses at an average price of 101.2 million ($2,670) rials per square meter. Residential units in this area registered a 9.9% growth in the average price, compared with the same period of last year.

Housing units located in District 18 were sold at the lowest prices during the one-month period–an average of 21.3 million rials ($563.5) per square meter.

CBI also reports an 11.2% annual growth in rents across Tehran for the month to February 18. The growth was 9.4% for other urban areas.

According to the report, 149,807 housing units were sold in Tehran during the 11 months to February 18, marking a 6.5% growth compared with the same period of last year. The average price is recorded at 43.6 million rials ($1,153) for the period, up 5.4% year-on-year.