Tehran Average Home Prices Up 69%

EghtesadOnline: The average price of each square meter of a residential property in Tehran stood at 287.96 million rials ($1,240) in the second month of the current fiscal year (April 21-May 21), latest data published by the Central Bank of Iran show.

News ID: ۷۸۶۵۰۰

29 May 2021

The rate indicates a surge of 69.7% compared with last year’s same month, as prices averaged 169.72 million rials ($731).

However, home prices in the capital city dropped by 1.8% compared to 293.22 million rials ($1,263) in the first month of the current year.

A total of 3,938 homes were sold in the capital during the month under review, registering an 88.1% increase compared with the preceding month but a 65.2% decrease compared with the same month of last year.

Details of Property Deals

The CBI data also show that during the month ending May 21, newly-built residential properties up to five years old constituted the highest proportion of deals at 35.7% (or 1,405 deals), down by 3.1 percentage points compared with the same month of last year.

The lost share was added to homes with a lifespan of six to 10 years, 11 to 15 years and above 20 years, which accounted for 20.8%, 13.5% and 13% of total deals compared with the same month of last year’s 18.3%, 12.5% and 12.6%, respectively.

The share of homes that were between 16 and 20 years old was 17% of the total home deals during the month ending May 21, compared with 17.8% in the same month of last year.

The distribution of dealt properties shows that among Tehran’s 22 districts, District 5 grabbed the highest share of total deals at 15.3%. It was followed by districts 10 and four with a share of 9.3% and 8.3%, respectively.

All-in-all, 10 districts (five, 10, four, two, seven, 14, one, 15, eight, and three) grabbed the lion's share of the deals at 71.5% with the remaining 12 districts holding a 28.5% share.

Among Tehran's 22 districts, District 1 registered the highest average home price of 602.1 million rials ($2,595) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 119.7 million rials ($516). The aforesaid numbers show a respective increase of 77.6% and 52.6% YOY.

Residential units with an average price range of 150 million rials ($646) to 200 million rials ($862) per square meter were the most popular in Tehran during the Iranian month under review, as they both grabbed a 17.2% share of all deals. They were followed by units priced at 200 million rials to 250 million rials ($1,077) per square meter with a share of 14.9% and homes priced at 100 million rials ($431) to 150 million rials per square meter with a share of 12.3%.

From the total number of deals, 58.8% belonged to homes cheaper than the average per-square meter price of the city, i.e., 288 million rials or $1,241.

Residential units with a floor area of 50-60 square meters registered the highest number of sales with a 15.2% share of total deals.

Units with an area of 60-70 square meters came second with a share of 14.8%. All-in-all, residential properties with an area of less than 80 square meters had a 56.1% share of total deals.

CBI data further show Tehran’s homes worth between 5 billion rials ($21,551) and 10 billion rials ($43,103) were the most popular with a 21.4% share of total deals. These were followed by homes with a price tag of between 10 billion rials and 15 billion rials ($64,655) and those priced at between 15 billion rials and 20 billion rials ($86,206) with a share of 16.9% and 12% of total deals.

Collectively, homes valued under 20 billion rials had a 53.5% share of total home deals in Tehran during the second month of the current year.

Two-Month Perspective

During the first two months of the current Iranian year (started March 21), the number of home deals finalized in Tehran totaled 6,032, which shows a 51.9% decline year-on-year.

In the same period, the average price of each square meter of a home in the capital stood at 290.59 million rials ($1,25o), signaling a YOY surge of 80.1% compared with the two months of last year.

Tenancy in Urban Areas

The central regulator also reports changes in tenancy prices in the capital city and across the urban areas.

According to CBI, the price of rented residential units in Tehran and across urban areas increased by 32.6% and 36.3% respectively during the second month of the current Iranian year compared with the corresponding month of the year before.