Municipalities across the country issued permits for 137,190 housing units across Iran’s urban areas in Q4 (winter), indicating a 20.5% increase compared with the previous quarter and a 14.2% growth compared with the corresponding quarter of last year.
The average number of residential units per permit across the country was 2.8. The average floor area of residential units per permit was 547 square meters.
A total of 13,346 homes are expected to be built as a result of the permits issued by Tehran Municipality in Q4, to register a quarter-on-quarter growth of 1.3% but a year-on-year decrease of 23.9%.
In Tehran, the total floor area of units in buildings stood at 2,352,000 square meters, registering a 5.1% and 24.3% decline QOQ and YOY respectively.
The average number of residential units per permit in the capital city was 7.4. The average floor area of units per permit in the capital city was at 1,302 square meters.
During the third quarter of the previous fiscal year (Sept. 21-Dec. 20, 2020), municipalities across the country issued permits for 113,816 housing units across Iran’s urban areas, indicating a 17.2% decrease compared with the quarter before but a 20.6% growth when compared with the corresponding quarter of last year.
The average number of residential units per permit across the country was 3 in Q3. The average floor area of residential units per permit was 572 square meters.
A total of 13,171 homes are expected to be built as a result of the permits issued by Tehran Municipality in Q3, to register a quarter-on-quarter decline of 4.7% and a year-on-year decrease of 18.7%.
Q3 data also show that in Tehran, the total floor area stood at 2,479,000 square meters, registering a 2.2% growth QOQ but a 20.6% decline YOY.
The average number of residential units per permit in the capital city was 8.2. The average floor area of units per permit in the capital city was at 1,552 square meters.
“The process of issuing building permits in Tehran in Q3 was fast tracked compared with Q1 [March 20-June 20] and Q2 [June 21-Sept. 21] of last year but the number of building permits still showed a 20% decline compared with Q3 of the year before,” the head of Construction Engineering Organization of Tehran Province, Saeed Saeedian, said.
He added that the number of construction permits issued in Q1 and Q2 was 55% and 38% fewer respectively compared with the corresponding period of last year.
“The rise in prices of building materials, the general inflation and increase in land prices and the fact that most construction workshops were closed or operated partially due to the outbreak of coronavirus are reasons behind the unusual state of housing sector this year. The recession that engulfed real-estate development is evident in the number of construction permits,” he was quoted as saying by Hibna.
Tehran’s Construction Material Inflation at 93.5% in Q1
The general price index of construction materials for residential properties in Tehran, using 2011 as the base year, grew by 93.5% during the four-quarter period ending June 21, which marks the end of the first quarter of the current Iranian year, compared with the previous year's corresponding period.
The annual inflation of construction material was 76.4% in Q4.
The index stood at 1,076.5 in Q1 (March 21-June 21), according to SCI's latest report published on its website.
Compared with the previous quarter, which ended on March 20, the index saw a 19.4% rise.
In the fourth quarter of last year (Dec. 21, 2020-March 20), the construction material price index stood at 902 and registered a 6.1% quarter-on-quarter growth.
The index rose by 100.7% in Q1 compared with last year's corresponding quarter (year-on-year). In Q4 of last year, the year-on-year index growth was 97.2%.
Compared with the previous quarter, the category of “services” registered the highest growth among all categories of construction materials with a growth of 27.7%. “Asphalt and bitumen-based waterproofing” recorded the lowest index growth with 1.1% compared with the preceding quarter.
“Stone” witnessed the highest year-on-year inflation with 143.7% while “services” category registered the lowest year-on-year price growth with 42.4%.
The highest annual price hike was registered for “ironware, rebar, profile for doors, windows and fences” group with 134.2% and the lowest annual growth was posted by “services” group with 39.2%.