Tehran Home Sales Dip 59% as Prices Increase 104% YOY

According to CBI, 5,986 homes were sold in the capital during the period, signaling a year-on-year decrease of 59.8% compared with the 14,886 deals of the corresponding month of last year. 

The number of property deals dropped by 50.6% compared with the preceding Iranian month.

The average price of each square meter of a residential unit in Tehran stood at about 132.99 million rials ($1,023) during the month, showing an annual surge of 104.3%, as average prices reached 65.1 million rials ($500) in last year’s same month, Financial Tribune reported.

Home prices in the capital grew by 4.9% compared to about 126.72 million rials ($975) in the second month of the current year.

Property Deals in Detail

Newly-built residential units up to five years old grabbed the highest share of the total of 5,986 deals made during the month that ended on June 21, with 39.7%--down by four percentage points compared with the same month of last year. 

The lost share was added to homes six to 10 years old and homes built 16 to 20 years ago, which registered an 18.4% and 17.1% share of total deals respectively. The share of dealings for houses more than 20 years old has also decreased from 57.2% of the total deals last year to 11.4% this year; they had the smallest share of total deals in the same month. 

Homes with a lifespan of 11 to 15 years posted a share of 13.4% of total deals.

The distribution of dealt properties shows that among Tehran's 22 districts, District 5 once again grabbed the highest share of total deals at 15%. It was followed by districts 4 and 2 with respective shares of 9% and 8.7%. 

All-in-all, 10 districts (five, four, two, 10, 14, seven, eight, 15, one and three) grabbed the lion's share of the deals at 70.6%, while the remaining 12 districts held a 29.4% share.

District 10 registered the highest average annual price growth at 134.2% during the third month of the current year. Homes located in District 1 had the lowest year-on-year average price hike of 89%. 

Among Tehran's 22 districts, District 1 registered the highest average home price of 268.1 million rials ($2,062) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price standing at 60.2 million rials ($463). These figures showed a respective increase of 89% and 107.9% YOY.

Residential units with an average price range of 75 million rials ($576) to 90 million rials ($692) per square meter were the most popular in Tehran during the Iranian month under review, as they grabbed a 10.5% share of all deals. 

They were followed by units priced at 60 million rials ($461) to 75 million rials per square meter with a share of 9.3%. 

From the total number of deals, 55.2% belonged to homes cheaper than the average per-square meter price of the city (133 million rials, or $1,023). 

Residential units with a floor area of 50-60 square meters registered the highest number of deals with a 14.6% share of total deals. 

Units with an area of 60-70 square meters and 70-80 square meters ranked second and third with shares of 13.7% and 12.6% respectively. All-in-all, units with an area of below 80 square meters had a 54.7% share of total deals.

CBI data further show that Tehran’s homes worth between 3 billion rials ($23,076)and 4.5 billion rials ($34,615) were the most popular and constituted a 15.3% share of total deals. 

Homes with price tags of between 4.5 billion rials and 6 billion rials ($46,153) followed with a share of 11.5% of total deals. Collectively, homes valued under 9 billion rials ($69,230) had a 50% share of total home deals in Tehran during the third month of the current year.

Q1 Perspective

During the first quarter of the current Iranian year that started on March 21, the number of home deals finalized in Tehran totaled 21,537. This figure was down 44.8% compared with Q1 of last year.

In the same period, the average price of each square meter of a home in the capital stood at about 124.13 million rials ($954), signaling a year-on-year surge of 106.7% compared with the three months of last year. 

Urban Tenancy 

The central regulator also reported changes to tenancy prices in the capital and across the country.

According to CBI, the price of rented residential units in Tehran and across all urban areas increased by 23% and 20.7% respectively during the third month of the current year compared with the similar period of last year.