The latest reports by the Central Bank of Iran and the website Donyay-e Eghtesad show a significant rise in housing prices in Tehran along with a noticeable decline in transactions within this sector.
According to official data published by the Iranian Statistics Center on March 18, the average housing price in Tehran reached 833 million rials per square meter. This figure represents a significant increase from the previous year, when prices rose by 168.72 million rials per square meter, indicating a continuing upward trend in the housing market.
Experts believe that this trend of rising prices could further reduce housing transactions. Central Bank data for the 11-month period from 2022 show that the volume of housing transactions has reached its lowest level since 2016 and even earlier. By comparison, data from 2022 versus 2017 show a 75% decline in housing transactions, a decline that industry professionals expect will continue.
The head of the Union of Real Estate Consultants in Tehran stated that the housing sector is affected by various factors, including government financial policies, inflation, exchange rates, among others. The overall impact on the market next year will largely depend on government actions and policies.
In an interview with the government newspaper Hamshahri, Kianush Goudarzi stated that with the rise in the price of the dollar from 500,000 to 600,000 rials, sellers who were previously looking for buyers and even offering discounts withdrew from the market. They raised their asking prices by 20% in anticipation of the developments that the Iranian year 1403 might bring.
Hossein Rostami, head of the Mashhad Real Estate Transaction Consultants Union, expressed on March 28 the need for both the government and the private sector to bridge the gap between supply and demand in order to revitalize the housing market and avoid a recession this year.
A review of housing market trends in Iran reveals that low purchasing power is the primary factor preventing potential buyers from obtaining housing. A report issued by the regime’s Council Research Center last summer highlighted that the lower to middle-income deciles are absolutely or relatively unable to afford the housing costs to meet their needs.
During his election campaign, Ebrahim Raisi promised to build one million homes annually – a claim that has proven to be unfounded more than two years into his administration.
As the lives of the people of Iran continue to plunge into poverty, the regime only makes claims of improving the economic conditions while squandering the nation’s wealth on terrorism and suppression. The people’s distrust of the regime and its policies are evident in the ongoing protests by all walks of life in different cities across the country.
