According to CBI, the average price of each square meter of a residential property in Tehran stood at 267.2 million rials ($931) during the seventh month of the current fiscal year (Sept. 22-Oct. 21), showing a surge of 110.1% over last year’s same month when prices averaged 127.15 million rials ($443).
The YOY inflation of the housing sector was last above 100% in the month ending June 21, 2019.
Home prices in the capital city increased by 10% compared to 242.88 million rials ($846) in the sixth month of the current year.
A total of 8,656 homes were sold in Tehran during the seventh month of the current fiscal year (Sept. 22-Oct. 21), registering a 2.3% increase compared with the preceding month and a 154.5% growth compared with the same month of last year.
Property Deals in Detail
The CBI data also show that during the month ending Oct. 21, newly-built residential properties up to five years old constituted the highest proportion of deals at 37% (or 3,205 deals), down by 4.9 percentage points compared with the same month of last year.
That lost share was added to homes above 11 years. Homes with a lifespan of 11-15 years, 16-20 years and above 20 years accounted for 13%, 19%, and 12.8% of total deals compared with the same month of last year’s 12.6%, 15.3% and 10.5%, respectively.
The share of deals involving homes that were six to 10 years old decreased from 19.6% of the total deals of last year’s same month to 18.2% this year.
The distribution of dealt properties shows that among Tehran’s 22 districts, District 5 grabbed the highest share of total deals at 14.7%. It was followed by districts 10 and two with a share of 9.4% and 8.4%, respectively.
All-in-all, 10 districts (five, 10, two, four, 14, seven, one, eight, 15, and 11) grabbed the lion's share of the deals at 73.4% with the remaining 12 districts holding a 26.6% share.
Among Tehran's 22 districts, District 1 registered the highest average home price of 568.7 million rials ($1,982) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 124.3 million rials ($433). The aforesaid numbers show a respective increase of 110.9% and 125.1% YOY.
Residential units with an average price range of 160 million rials ($557) to 180 million rials ($627) per square meter topped demand in Tehran during the Iranian month under review, as they grabbed an 8.2% share of all deals. They were followed by units priced at 140 million rials ($488) to 160 million rials per square meter with a share of 7.9% and homes priced at 120 million rials ($418) to 140 million rials per square meter with a share of 7.6%.
From the total number of deals, 58.3% belonged to homes cheaper than the average per-square meter price of the city (i.e. 267.2 million rials or $931).
Residential units with a floor area of 50-60 square meters registered the highest number of sales with a 14.7% share of total deals.
Units with an area of 60-70 square meters and 70-80 square meters were placed second and third with shares of 14.3% and 11.4%, respectively. All-in-all, residential properties with an area of less than 80 square meters had a 54.5% share of total deals.
CBI data further show homes worth between 6 billion rials ($20,920) and 8.5 billion rials ($29,637) were the most popular with a 13% share of total deals. These were followed by homes with a price tag of between 8.5 billion rials and 11 billion rials ($38,354) and those priced at between 11 billion rials and 13.5 billion rials ($47,071) garnered a share of 11.2% and 8.2% of total deals.
Collectively, homes valued under 18.5 billion rials ($64,504) had a 52.6% share of total home deals in Tehran during the seventh month of the current year.
Seven-Month Perspective
During the seven months of the current Iranian year that started on March 20, the number of home deals finalized in Tehran totaled 63,577, which shows a 77.6% rise year-on-year.
In the same period, the average price of each square meter of a home in the capital stood at 208.91 million rials ($728), signaling a YOY surge of 64.3% compared with the seven months of last year.
Tenancy in Urban Areas
The central regulator also reported changes to tenancy prices in the capital city and across other urban areas.
According to CBI, the price of rented residential units in Tehran and across urban areas increased by 26.8% and 29.6% respectively during the seventh month of the current year compared with the similar month of last year.