Iran: Q1 Land, Home, Rent Prices Rise

EghtesadOnline: The Statistical Center of Iran has published its latest report on the state of home and land prices in addition to rents, which indicates all have significantly increased across urban areas in the country during the first quarter of the current fiscal year that ended on June 21.

News ID: ۷۸۴۰۷۶

25 September 2018

According to the report, published on the official website of SCI, the average price of each square meter of land (vacant) or land of a rundown residential property (residential units that are unsuitable for living to a degree that only the underlying land is useful for construction) in Iran's urban areas went up by 29% during Q1 compared with last year's corresponding period. Prices increased by 3.6% compared with last year's Q4.

The minimum price of each square meter of land or land of a rundown property in the country stood at 260,000 rials ($1.8) while the maximum was at about 260.78 million rials ($1,870), bringing the average to about 13.37 million rials ($93).

The number of land deals made during the current year's Q1 increased by 27.7% compared with the similar period of last year, but declined by 1.9% when compared with the final quarter of last year, Financial Tribune reported.

The average area of each dealt land or land of a rundown property in real estate agencies across urban areas was reported at 339 square meters by SCI.

30.3% YOY Rise in Home Prices

According to the report, the average price of each square meter of residential floor area surged by 30.3% during this year's Q1 on a year-on-year basis. When compared to the previous quarter, prices indicated a growth of 5.8%.

The minimum price of each square meter of residential floor area across urban areas during this year' Q1 stood at 804,000 rials ($6) with the maximum price registered at about 379.82 million rials ($2,655). The average price was about 19.37 million rials ($135).

In terms of the number of deals for residential floor areas, the current year's Q1 saw a rise of 29.7% compared with the Q1 of last year. Against the Q4 of last year, the number of such deals registered a contraction of 3.9%.

SCI put the average dealt floor area at 108 square meters while putting the average age of residential units at 11 years.

22% YOY Rise in Rent Prices

The Statistical Center of Iran 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 22% during this year's Q1 compared with the Q1 of last year while they grew by 5.2% compared with the final quarter of last year.

The minimum cost of each square meter of residential floor area rented in Iran's urban areas stood at 1,640 rials ($0.01) with the maximum being registered at about 1.42 million rials ($99), bringing the average to 98,002 rials ($0.69) per month.

Compared with the first quarter of last year, this year's first quarter rent deals decreased by 9.8% whereas they increased by 11.9% compared with the final quarter of last year.

SCI reported the average area of total rent deals at 96 square meters and put the average age of dealt units 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.

In light of the fact that 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.

All currency exchanges are calculated based on the Sept. 23 rate of 143,104 rials to the US dollar registered in the official Sana system of the Central Bank of Iran.