Tehran Grabs One-Third of All Home Loans to Iranian Provinces

EghtesadOnline: Tehran received about one-third of all home purchase loans allocated to Iranian provinces during the first half of the current fiscal year (March 21-Sept. 22), latest data released by the agent bank of the Iranian housing sector show.

News ID: ۷۸۴۲۵۲

23 October 2018

According to a report published on HIBNA, the official news website of state-run Bank Maskan, which almost exclusively services the sector, a total of 111,989 home purchase loans worth about 55 trillion rials ($381.15 million) were allocated to applicants during this period.

Among Iran's 31 provinces, Tehran grabbed about one in every three loans.

The reason the province absorbs a major portion of total home purchase loans is that it houses a big portion of prospective homebuyers, according to Financial Tribune.

According to Bank Maskan figures, a total of 36,620 home purchase loans were allocated to prospective homebuyers in Tehran in the first half of the current fiscal year, which signifies a 32.69% share.

The loans mainly came out of the Housing Savings Account (HSA). The account is the country's most affordable homeownership initiative that requires applicants to make down payments and wait for a year to become eligible for cheap home loans. The facilities mostly target first-time homebuyers and those living in distressed urban areas.

The bank's housing account for the youth and its housing bonds were the next biggest sources of providing homeownership facilities to applicants.

In addition to grabbing a 32% share of the total number of loans, Tehran also grabbed a share of the total rial value of the loans, which was higher than 36%.

The total volume of loans handed out to applicants from Tehran Province during the first half of the current year totaled 20 trillion rials ($138.56 million).

In Tehran, Bank Maskan's branches active in the western parts of the province doled out the highest number of loans at 16,377 during the period. They were followed by branches in the eastern parts of the province that extended 11,671 loans to applicants.

A total of 7,860 loans were allocated by Bank Maskan's branches in the central parts while 712 loans were also handed out by the central branch of the bank.

Other Provinces

According to figures published by Bank Maskan for the first half of the current year, three other provinces, in addition to Tehran, grabbed notable shares of total home purchase loans allocated across the country.

The provinces of Alborz, Khuzestan and East Azerbaijan trailed Tehran respectively.

A total of 8,391 counts of loans were handed to applicants in Alborz—a 7.5% share of total loans. Prospective homebuyers in Khuzestan and East Azerbaijan received 7,054 and 6,222 loans from Bank Maskan, giving them a respective share of 6.3% and 5.5% of total loans.

According to latest figures released by the Central Bank of Iran, the country's banking system allocated 3.03 quadrillion rials ($22.13 billion) to various sectors during the first half of the current year to register a 12.1% annual rise. The money was extended in the form of 4.34 million loans.