Bank Maskan Construction Loans Top $230 Million in H1

EghtesadOnline: Bank Maskan, the state-run agent bank of housing sector, granted a total of 62,944 construction loans worth 26,200 billion rials ($230.22 million) to real-estate developers across the country during the first six months of the current Iranian year (started March 21).

News ID: ۷۸۴۹۵۶

22 October 2019

During the month ending Sept. 22, a total of 13,668 construction loans worth 5,710 billion rials ($50.17 million) to real-estate developers registered a 1% and 2.7% growth in number and value, respectively, Mohammad Hassan Alamdari, an official with the bank, told HIBNA.

Bank Maskan’s facilities are chiefly granted for home purchases and home constructions in various forms, including bond facilities and savings funds.

The Statistical Center of Iran's latest report shows the number of permits issued during the fourth quarter of the last fiscal year increased significantly both compared with the preceding quarter (Sept. 23-Dec. 21, 2018) and the same period of the year before, according to Financial Tribune.

According to SCI, a total of 114,614 building permits were issued by municipalities across Iran’s urban areas in Q4, indicating a 50.1% increase compared with the quarter before and an increase of 23.9% year-on-year.

The average number of residential units to be built as part of each permit issued in Iran stood at 2.5 and the average floor area of units per permit was 466 square meters.

In the capital city, a total of 18,953 building permits were issued by Tehran Municipality in Q4, indicating a quarter-on-quarter growth of 12.5% and a year-on-year increase of 25.4%.

The average number of residential units per permit issued in Tehran was 7.1.

In Tehran, the total floor area of units in buildings with permits in Q4 was at 3,552,000 square meters, registering a 5.4% rise QOQ and a 29.8% increase YOY.

The average floor area of units per permit was 1,329 square meters.

“Iran's housing market has been bracing for inflationary recession amid a widening home supply deficit,” says Fardin Yazdani, the Comprehensive Housing Plan’s deputy for research.

Referring to increasing home prices in line with a decline in the number of home deals, Yazdani said the main reason for this is that the housing sector has failed to boost production.

"In other words, despite strong housing demand last year, the supply side has failed to catch up," he was quoted as saying by the news service of the Ministry of Roads and Urban Development.

The Central Bank of Iran's latest report shows the number of property deals and home prices in Tehran decreased for the second consecutive month, in the sixth month of the current Iranian year (ended Sept. 22) compared with the month before.

Data published by CBI on its official news website indicate that the average price of each square meter of a residential unit in Tehran stood at 126.67 million rials ($1,114) during the month under review, showing a surge of 56.5% over last year’s same month, as average prices were registered at 80.95 million rials ($711).

Home prices in the capital city declined by 2.8% compared to 130.25 million rials ($1,145) in the fifth month of the current year.

A total of 2,787 homes were sold in the capital during the sixth month of the current fiscal year, signaling a year-on-year decline of 73% compared with the 10,335 deals in the corresponding month of last year.

The number of property deals fell by 15.3% compared with the preceding Iranian month.