EghtesadOnline: After a tumultuous second Iranian month, Tehran's housing market became calmer in the third month that ended on June 21 in terms of home deals, but registered a whopping 45% annual growth in terms of prices.
According to the latest report published by the Central Bank of Iran's official website on Wednesday, a total of 14,886 residential units were dealt by Tehran's registered real-estate agents, down by 22.1% and 3.1% compared with the previous month and the same month of the previous year respectively.
The price of each square meter of residential unit stood at 65.1 million rials ($1,529), up by 8.9% when compared with the second month of the current year. The annual price growth, however, was equal to a staggering 45.8%.
Iran's housing sector has recently come out of a years-long recession and is experiencing what many think to be a short period of boom that will exert heavy pressure on people aiming to purchase a house in the Tehran market, according to Financial Tribune.
The decline in the number of home deals in the third month is most probably due to lower speculative demand from those looking to make a quick profit. The second month saw 19,107 deals, up by 16.7% on a year-on-year basis, and a per-square meter price of 59.8 million rials ($1,405) that indicated an annual growth rate of 34.8%.
According to CBI, newly-built residential units with an age of up to five years again had the lion's share of the deals during the third month of the current year at 43.7%.
Units ranging from six to 10 years had a 16.3% share while homes of ages 11 to 15 years and 16 to 20 years each grabbed shares equal to 14.7% and 14.6% respectively.
The distribution of deals shows that among Tehran's 22 districts, District 5 had the highest share at 13.9% of all deals. At 71.6%, an overwhelming share of the deals was registered in 10 districts.
District 5 was again at the end of the spectrum in terms of price growth, as it registered a huge annual surge of 63.6%. The lowest price growth belonged to District 20 at 16.6%. The affluent northern District 1 retained its status as the priciest district in Tehran where the value of each square meter of a residential unit was registered at 141.8 million rials ($3,331).
At 29 million rials ($681), District 18 was the capital's cheapest region, marking a year-on-year hike of 43.5%.
CBI data show that in the third month of the current year, residential units with a price range of 30 million rials ($705) to 35 million rials ($822) per square meter had the highest single share of total deals at 7.9%.
Furthermore, 56.4% of all transacted units were priced lower than the average for the whole city. Homes with a floor area of 60 to 70 square meters were in highest demand, as they grabbed a 15% share of all the deals. All-in-all, homes with a floor area of lower than 80 square meters had a 54% share of the deals.
Home rents grew by 12.5% and 10.4% across Tehran and across all urban areas respectively during the third month of the current year.
From a three-month perspective, the number of residential deals in Tehran exceeded 39,000, indicating a rise of 5.2% compared with the first quarter of the previous year. In this period, the price of each square meter of a residential unit equaled 60.1 million rials ($1,412), showing a year-on-year jump of 36.8%.