Iran: Construction Permits Increase by 9.8% YOY

According to the report published by SCI's website, a total of 2,890 construction permits were issued by Tehran Municipality in Q2, indicating a quarter-on-quarter decline of 5.4% but a year-on-year increase of 9.8%. 

In Tehran, the number of projected residential units to be built through the permits issued in Q2 stood at 21,047, up by 7.1% compared with the preceding quarter and 12.1% compared with the same period of last year. 

The average number of residential units per permit was 7.3, Financial Tribune reported.

In Tehran, the total floor area of units in each building in Q2 was equal to 3,882,000 square meters, registering a 9.8% rise quarter-on-quarter and 9.6% increase year-on-year. The average floor area of units as per each permit was 1,343 square meters.

A total of 33,457 construction permits were issued by municipalities across Iran’s urban areas in Q2, indicating a 2.4% decrease compared with the previous quarter but an increase of 12.6% when compared with the corresponding quarter of the last year. 

According to SCI, the number of residential units envisaged as part of the construction permits amounted to 94,932 across all urban areas in the country, showing an increase of 4.7% quarter-on-quarter and a 15.4% increase year-on-year. 

The average number of residential units to be built as part of each permit stood at 2.8.

Across all Iranian urban areas, the total floor area of units in permitted constructions in Q2 was equal to 17,660,000 square meters. The figure indicated a 1.39% rise compared to the previous quarter and a 14.4% rise year-on-year. 

The average floor area of units for each permit was 528 square meters, SCI reported.

Q2 Land, Home, Rent Price Changes

An earlier report by SCI on the state of home and land prices, in addition to rents, suggested that all have increased significantly across urban areas in the country during the second quarter of the current fiscal year (June 22-Sept. 22, 2018). 

The average price of each square meter of residential floor area surged by 44.4% in Q2 on a year-on-year basis. When compared to the previous quarter, prices indicated a growth of 14.9%.

The minimum price of each square meter of residential floor area across urban areas in summer stood at 865,000 rials ($7.5) with the maximum price registered at about 380.8 million rials ($3,327). The average price was about 22.26 million rials ($194).

In terms of the number of deals for residential floor areas, the current year's Q2 saw a rise of 15.8% compared with last year's corresponding period. Against the Q1 of this year, the number of deals registered a rise of 11.3%. 

SCI put the average dealt floor area at 106 square meters while the average age of residential units was 11 years.

The average price of each square meter of land (vacant) or land of a rundown residential property (residential units considered old to a degree that only the underlying land is useful for construction) in Iran's urban areas went up by 49.2% during Q2 compared with last year's corresponding period. Prices increased by 29% compared with this year’s Q1. 

The minimum price of each square meter of land or that of a rundown property stood at 400,000 rials ($3.49) while the maximum was at 314.7 million rials ($2,749), bringing the average to about 17.25 million rials ($150). 

The number of land deals made in summer increased by 41.9% compared with the similar period of last year and by 11.1% when compared with the first quarter of this year.

The average area of each dealt land or that of a rundown property in real estate agencies across urban areas was reported at 307 square meters by SCI.

As for rents, the average rent prices increased by 26% during the period under review compared with the Q2 of last year while they grew by 10.3% compared with the first quarter of this year.

The minimum cost of each square meter of residential floor area rented in Iran's urban areas stood at 1,818 rials ($0.01) with the maximum being registered at about 1.46 million rials ($12.75), bringing the average to 108,096 rials ($0.92) per month.

Compared with the second quarter of last year, this year's second quarter rent deals decreased by 9.8% whereas they increased by 37.5% compared with the first quarter of this year.

SCI reported the average area of total rent deals at 97 square meters and put the average age of dealt units at 13 years.