EghtesadOnline: The latest data disclosed by the Central Bank of Iran show that private sector investment in the housing sector increased during the first half of the previous fiscal year to Sept. 22, 2017, with special focus on residential units.
Results of studies from 79 sample cities published on the official CBI website show that in the first half of last year, the private sector invested more than 381.11 trillion rials ($8.8 billion) on the construction of all buildings–including new construction, half-finished and finished buildings– across Iran's urban areas. That number was higher by 12.4% when compared with H1 2016-17.
From this amount, more than 95.34 trillion rials ($2.2 billion) were invested on buildings that just began construction, showcasing a year-on-year rise of 6.6%. More than 225.78 trillion rials ($5.21 billion) were invested on half-finished buildings, higher by 15.1% compared to the year before. The 59.98 trillion rials ($1.38 billion) invested on completed buildings showed the highest annual rise at 47.1%.
In the first two quarters of last year, the private sector commenced the construction of 67,837 buildings in Iran's urban areas, down by 1.9% compared to the year before. The total floor area of these buildings was estimated at 37.4 million square meters. The price of each square meter averaged at about 9.09 million rials ($210), which was higher by 7.2% when compared with the year before, Financial Tribune reported.
Of the total number of buildings, the lion's share belonged to 56,565 residential buildings and indicates a 0.8% annual hike. The average price of each square meter of residential buildings was estimated at about 8.88 million rials ($205), up by 8% YOY.
The private sector completed the construction of 52,081 buildings in H1 2017-18 across all urban areas, which is higher by 54.7% compared with H1 2016-17. The overall floor area of these buildings was reportedly more than 32.6 million square meters. The average price of each square meter of the completed buildings stood at 8.81 million rials ($203) that registered a YOY rise of 14.9%.
From the more than 52,000 buildings, 43,898 were residential buildings that managed to boost their annual share by 59.9%. The average price of each square meter of a residential building completed by the private sector during H1 2017-18 stood at about 8.52 million rials ($197), which was up by 16.8% compared with H1 2016-17.
From the total number of residential buildings completed by the private sector in the first half of last year, buildings with one residential unit had the highest share at 32.7%, those with two residential units ranked second with a 23.2% share and were followed by buildings boasting seven or more units at 13.9%.
The total number of completed residential units equaled 187,880, up by 18.4% on an annual basis. The average floor area of the units was 153 square meters, higher by 10.9% YOY.