Construction Permits Increase

EghtesadOnline: The number of permits issued for the construction of residential units both across Iran and in Tehran registered increases during the third quarter of the previous fiscal year to Dec. 21, 2017, latest data released by the Statistical Center of Iran show.

News ID: ۷۸۲۴۸۶

05 May 2018

According a report published on the center's website on Tuesday, permits for 67,511 residential were issued by municipalities last autumn. This number indicates a decrease of 18.2% and a small increase of 0.8% when compared with the previous season and the same period of the year before.

"The average number of residential units per construction permit was 2.8 units," SCI reported.

On a countrywide scale, municipalities issued construction permits for 23,792 buildings during the penultimate quarter of last year, which was 19.5% and 0.1% lower than the second quarter and the same quarter of the year before respectively, Financial Tribune reported.

The construction of more than 12.17 million square meters in floor area of residential homes were permitted by the municipalities, registering a respective decline of 22.6% and 2.4% when compared with the previous quarter and the same quarter of the year before.

The average floor area constructed per permit stood at 512 square meters.

According to SCI, 16,304 residential units were projected for construction as part of the permits issued by Tehran Municipality in the third quarter of last year.

This number showed a decline of 13.1% when compared with the previous quarter and an increase of 10.6% when compared with the same quarter of the previous year.

The average figure of residential units built per permit was 7.2 during this period, the report said.

During last year's Q3, the number of permits issued by TM for the construction of buildings stood at 2,262, which showed a respective decline of 14% and 14.4% when compared with last year's Q2 and Q3 of the year before.

A total floor area of more than 2.87 million square meters was constructed as a result of those permits during the third quarter of last year. It was lower by 18.9% when compared with the previous quarter and higher by 7.4% when compared with the same quarter of the year before.

The average floor area built per permit was 1,270 square meters.

Construction Materials Costlier

In a separate report also published on Tuesday, SCI disclosed its latest data on the price of construction materials index in Tehran, except for the whole of the previous fiscal year that ended on March 20, 2017.

According to the center, the index experienced an increase of 12.3% when compared with the year before and reached 212.1. This is while the index stood at 188.9 in the fiscal 2016-17 and rose by 6.6% compared with the year before.

What is more, the increase is higher than the 9.6% inflation rate announced by the Central Bank of Iran for the fiscal 2017-18.

During the fiscal 2017-18, the index indicated a rising trajectory in all quarters of the year. However, "the highest seasonal change related to this index was registered during the summer at an inflation rate of 7.3%".

The "ironware, rebar and doors and windows' shapes" group was responsible for the bulk of increase in the inflation of the construction materials because prices of materials in this group grew by a notable 32.9% last year.

The "services" group came next with 7.5% and was followed by the "cement, concrete, gravel and sand" group that registered an annual price jump of 14.9%.