“If there is no rise in house prices, we should not witness a surge in rents,” Hesam Oqbaei was also quoted as saying by ISNA.
Oqbaei predicted that the increase in rents to be in line with inflation since raising it further would not be possible, “as workers and average earners will not be able to afford a higher jump in rents”.
The official noted that most rent contracts take place during the summer, whereas winter sees the least activity in the residential rental market, according to Financial Tribune.
“Since rents increased by 8.6% in autumn compared with the same period of last year, we could say the increase has been even cooler during the winter,” he added. Oqbaei said rents witnessed a rise in line with inflation during the current year’s autumn but the market stayed steady during the first two months of winter and rates declined compared with autumn or summer.
The key housing sector has been in recession for the five years and despite efforts by the government to breathe new life into it, results have not been encouraging.