Tehran Housing Market Rebounds
EghtesadOnline: Following a very weak performance during the first month of the current Iranian year, Tehran's real-estate market has registered a healthy growth in the number of residential deals during the second month to May 21.
The latest report by the Central Bank of Iran published on its official website, which employs data from the Tenement Management Information System, indicates that the number of home deals in Tehran during the second month of the current year reached 19,100, which signals a respective increase of 278.7% and 16.7% when compared with the previous month and the same month of last year.
As CBI pointed out in its report, the huge 278.7% increase is because traditionally, the first month of the year sees the lowest volume of home deals, as half of it is taken up by Norouz holidays. However, the first fiscal month showcased a performance even weaker than anticipated as only 5,000 residential deals were registered in Iran's capital, lower by 6.3% compared with the first month of the year before.
During the second month of the current year, the average price of 1 square meter of a residential unit in Tehran reached 59.8 million rials ($1,420) which was higher by 8.2% and 34.8% when compared with the previous month and the same month of last year. Similar to previous months, from the 22 districts of Tehran, District 5 again registered the highest price jump at a hefty 53.5% while the lowest hike belonged to District 16 at 12.3%, according to Financial Tribune.
This is while general inflation was announced at less than 10% both by the central bank and the Statistical Center of Iran.
The northernmost District 1 retained its status as the priciest in Tehran, as the highest average of 1 square meter of residential unit dealt through Tehran's real-estate agents belonged to the district at 125.5 million rials ($2,980). At an average of 27.1 million rials ($644) per square meter, District 18 was the city's cheapest. The aforementioned numbers were respectively higher by 28.6% and 23% when compared with the same month of last year.
In terms of age, newly-built homes (zero to five years) registered the biggest share of units traded at 43.9% while units that were six to 10 years old ranked second at 16.5%. Units of 11 to 15 years and 16 to 20 years grabbed a respective 14.7% and 14.6% share and units older than 20 years had a 10.3% share.
During the first two months of the current year, a total of 24,200 residential units were transacted in Tehran, higher by 11% compared with the same month of last year. During this period, the average price of 1 square meter of a residential unit was equal to 57.5 million rials ($1,365) which was higher by 32.2% year-on-year.
According to the central bank, home rents in Tehran and across all urban areas grew by 11% and 9.6% respectively during the second month of the current year. Housing expenses continue to grab a 33.1% share in Iranian households' total expenses.