Iran's Q1 Land, Home Prices Double

EghtesadOnline: The Statistical Center of Iran has published a new report on home and land prices, as well as rent levels in the country’s urban areas during the first quarter of the current fiscal year (March 21-June 21).

News ID: ۷۸۷۵۶۰

04 January 2022

According to a report published on SCI’s website, the average price of each square meter of land or land of a rundown residential property (residential units that are considered old to a degree that only the underlying land is useful for construction) in Iranian cities went up by 104.7% in Q1 compared with the corresponding period of the year before. Prices increased by 25.6% compared with the preceding quarter (Q4 of the last Iranian year that ended on March 20, 2021).

The minimum price of each square meter of land or land of a rundown property stood at 1 million rials ($3.37) while the maximum was 1.68 billion rials ($5,664), bringing the average to 116.94 million rials ($394).

The number of land deals during the current Iranian year’s Q1 declined by 22.5% compared with the similar period of the year before but increased by 7.9% when compared with the fourth quarter of last year.

The average area of each dealt land or land of a rundown property in real-estate agencies across Iranian cities was reportedly 291 square meters.

The SCI report also shows the average price of each square meter of residential floor area in urban areas surged by 100.2% in Q1 on a year-on-year basis. Compared with the previous quarter, prices saw a growth of 12.2%.

The minimum price of each square meter of residential floor area across urban areas during the first quarter stood at 1.05 million rials ($3.54) while the maximum price reached 1.93 billion rials ($6,507), hence the average price was 115.03 million rials ($387).

In terms of the number of residential deals, this year’s Q1 saw a decline of 31.6% compared with Q1 of the year before. Against Q4 of last year, the number of home deals registered a growth of 14.8%.

SCI put the average dealt floor area in Q1 at 115 square meters while putting the average age of residential units at 13 years. It also disclosed figures for monthly home rents plus a 3% collateral legally paid to rent 1 square meter of residential floor area.

It reported that the average rent prices increased by 63.7% during the period compared with the Q1 of the year before and 23% compared with the fourth quarter of last year.

The minimum price of each square meter of residential floor area rented in the Iranian cities stood at 2,508 rials (about 1 cent) with the maximum being 6.57 million rials ($22.15), bringing the average to 281,922 rials (95 cents) per month.

The number of rent deals increased by 136.6% compared with the first quarter of the year before and increased by 57.7% compared with the preceding quarter.

SCI put the average area of total rent deals at 104 square meters and the average age of rental homes at 14 years.

All figures reported by SCI employ data extracted from the state-run Tenement Management Information System operated by the Ministry of Roads and Urban Development.

Established with the aim of making home purchase and renting deals more transparent, the system legally requires all certified real-estate agencies to register their deals.

As sudden changes in the number of deals in major cities lead to a significant change in prices across a province or the whole country, the report uses a balanced weighted average for its reports to identify real price changes by eliminating the effect of home deals.

The related weights were based on occupied residential units surveyed during a general census conducted in the fiscal 2016-17.