Urban Housing Rent Inflation at 27.6 Percent in 2nd Quarter: SCI

EghtesadOnline: The average Consumer Price Index for rent levels of residential homes in urban areas during the four-quarter period to Sept. 22, which marks the end of summer, increased by 27.6% compared with the corresponding period of last year.

News ID: ۷۸۷۱۴۰

11 October 2021

The Statistical Center of Iran had put the annualized inflation rate for the preceding quarter (spring), which ended on June 21, at 28.8%.

The highest and lowest annual average inflation rates in Q2 were registered for Kermanshah and Sistan-Baluchestan provinces with 37.5% and 13.2% respectively.

According to the SCI report, CPI for rent levels in urban areas (using the Iranian year to March 2017 as the base year) stood at 244.1 in the second quarter of the current Iranian year (June 22-Aug. 22), indicating an 8% increase compared with the previous quarter.

SCI had put the quarter-on-quarter rent inflation rate for the preceding quarter, which ended on June 21, at 3.5%.

Lorestan and Sistan-Baluchestan provinces registered the highest and lowest quarter-on-quarter inflation rates for tenants in urban areas with 27.5% and 2.5% respectively.

The consumer rent price index in urban areas increased by 24.7% in Q2 against the same quarter of last year. SCI had put the year-on-year rent inflation rate for the preceding quarter at 29.1%.

The highest and lowest inflation rates on a year-on-year basis in the second quarter of the current Iranian year were posted by Lorestan with 41.8% and Khorasan Razavi with 13.1%.

The report also shows CPI measured for housing sector (sales) in urban areas stood at 244.8 in Q2, indicating an 8% rise compared with the previous quarter and a 24.9% growth over the same quarter of last year.

SCI had put the quarter-on-quarter and year-on-year housing inflation rate for the preceding quarter at 3.6% and 29.3%, respectively. The annual average housing CPI increased by 27.9% in Q2 compared with the similar quarter of last year. SCI had put the annual housing inflation rate for the preceding quarter at 29%.

CPI calculated for maintenance and repair services of residential units, including plumbing, plastering, home electrification and insulation services, in urban areas stood at 312.3 in Q2, indicating a 7.1% rise compared with the previous quarter and a 44.5% growth over the same quarter of the year before.

SCI had put the quarterly and year-on-year maintenance and repair services inflation rate for the preceding quarter at 11.1% and 51.9%, respectively. The CPI for maintenance and repair services increased by 45.8% in the four-quarter period ending Sept. 22 while it reached 43.1% in the preceding quarter.

CBI Report

Latest data published by the Central Bank of Iran show the price of rented residential units in Tehran and across urban areas increased by 42.8% and 45.7% respectively during the sixth month of the current Iranian year compared with the corresponding month of last year.

The average price of each square meter of a residential property in Tehran stood at 317.03 million rials ($1,139) in the sixth month of the current fiscal (June 22-Sept. 22).

The rate indicates a surge of 30.5% over last year’s same month as average prices were registered at 242.88 million rials ($872).

Home prices in the capital city grew by 2.4% compared to 309.7 million rials ($1,112) in the fifth month of the current year.

A total of 7,789 homes were sold in the capital during the month under review, registering an increase of 41.6% compared with the preceding month but an 8% decrease compared with the same month of last year.

The CBI data also show that during the month under review, newly-built residential properties up to five years old constituted the highest proportion of deals at 33% (or 2,574 deals), down by 20 percentage points compared with the same month of last year.

That lost share was added to homes with a lifespan of six to 10 years, 11 to 15 years, 16 to 20 years and above 20 years. They accounted for 22.5%, 14.1%, 17.8% and 12.9% of total deals compared with the same month of last year’s 18.3%, 13.6%, 17.4% and 12.7%, respectively.

The distribution of dealt properties shows that among Tehran’s 22 districts, District 5 grabbed the highest share of total deals at 14.2%. It was followed by districts 10 and two with a share of 10% and 8.7%, respectively.

All-in-all, 10 districts (5, 10, 2, 4, 14, 7, 8, 1, 15 and 11) grabbed the lion's share of deals at 72.6% with the remaining 12 districts holding a 27.4% share.

Among Tehran's 22 districts, District 1 registered the highest average home price of 689.1 million rials ($2,476) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 150.3 million rials ($540). The aforesaid numbers show a respective increase of 35.7% and 44.3% YOY.

Residential units with an average price range of 150 million rials ($538) to 200 million rials ($718) per square meter were the most popular in Tehran during the Iranian month under review, as they accounted for 16.3% of all deals. They were followed by units priced at 200 million rials to 250 million rials ($898) per square meter with a share of 16% and homes priced at 250 million rials to 300 million rials ($1,077) per square meter with a share of 12.9%.

From the total number of deals, 59.4% belonged to homes cheaper than the average per-square meter price of the city (i.e., 317 million rials or $1,139).

Residential units with a floor area of 60-70 square meters registered the highest number of sales with a 15.1% share.

Units with an area of 50-60 and 70-80 square meters came second and third with a respective share of 14.7% and 11.8%. All-in-all, residential properties with an area of less than 80 square meters had a 56.3% share of total deals.

CBI data further show that Tehran’s homes worth between 10 billion rials ($35,932) and 15 billion rials ($53,898) were the most popular with an 18.2% share of total deals. These were followed by homes with a price tag of between 5 billion rials ($17,066) and 10 billion rials and those priced at between 15 billion rials and 20 billion rials ($71,864) with a respective share of 17.6% and 12.6% of total deals.

Collectively, homes valued under 20 billion rials had a 50.1% share of total home deals in Tehran during the sixth month of the current year.