Bank Maskan Raises Youth Home Loan Ceilings

EghtesadOnline: Bank Maskan, the state agent bank of the housing sector, has raised the ceiling on home loans paid under the so-called Youth Savings Account.

News ID: ۷۸۷۰۰۷

12 September 2021

According to Mahmoud Shayan, managing director of the bank, home loans worth 10 billion rials [$35,900] in Tehran, 8.5 billion rials [$30,050] in provincial capital cities and large cities with a population of over one million, namely Karaj, Mashhad, Tabriz, Isfahan, Ahvaz, Shiraz and Kermanshah, and 7 billion rials [$25,130] in other Iranian cities will be paid to the applicants.

Customers holding a Youth Savings Account may make a monthly deposit for five to 15 years to become eligible for this type of housing loans. Loans paid under Youth Savings Account have the longest mortgage repayment period of up to 20 years.

“As of today, applicants can open Youth Savings Account and make a deposit of 2 million rials [about $7] each month and get their 10-billion-rial loan within 15 years. They will be eligible to receive loans worth 4 billion rials in [$14,360] Tehran, 3.5 billion rials [$12,560] in provincial capital cities and large cities, and 3 billion rials [$10,700] in other cities after five years of investment,” he was quoted as saying by IRNA.

Latest data released by the Central Bank of Iran show the average price of each square meter of a residential property in Tehran stood at 309.7 million rials [$1,100] during the fifth month of the current fiscal (June 22-August 22), showing a surge of 34% over last year’s same month as average prices were registered at 231.07 million rials ($820) then. Home prices in the capital city grew by 3.1% compared to 300.45 million rials ($1,067) in the fourth month of the current year.

Among Tehran's 22 districts, District 1 registered the highest average home price of 645.6 million rials ($2,291) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 144.1 million rials ($511). The aforesaid numbers show a respective increase of 22.2% and 47.8% YOY.

Residential units with an average price range of 150 million rials ($532) to 200 million rials ($710) per square meter were the most popular in Tehran during the Iranian month under review, as they accounted for 17.2% of all deals. They were followed by units priced at 200 million rials to 250 million rials ($888) per square meter with a share of 15.9% and homes priced at 250 million rials to 300 million rials ($1,065) per square meter with a share of 12.7%.

From the total number of deals, 59.4% belonged to homes cheaper than the average per-square meter price of the city (i.e., 309 million rials).

Residential units with a floor area of 50-60 square meters registered the highest number of sales with a 14.9% share of total deals.

Units with an area of 60-70 and 70-80 square meters came second and third with a respective share of 14.2% and 12.7%. All-in-all, residential properties with an area of less than 80 square meters had a 57% share of total deals.

CBI data further show that Tehran’s homes worth between 10 billion rials ($35,523) and 15 billion rials ($53,285) were the most popular with an 18.3% share of total deals. These were followed by homes with a price tag of between 5 billion rials ($17,761) and 10 billion rials and those priced at 15 billion rials to 20 billion rials ($71,047) with a respective share of 17.7% and 12.7% of total deals.

Collectively, homes valued under 20 billion rials had a 50.6% share of total home deals in Tehran during the fourth month of the current year.

According to CBI, the price of rented residential units in Tehran and across urban areas increased by 37.8% and 41.2% respectively during the fifth month of the current Iranian year compared with the corresponding month of last year.