EghtesadOnline: Residential deals in Tehran cooled in mid-summer but prices continued on their rising trajectory, the latest data released by the Central Bank of Iran show.
A report published on CBI's website on July 26 showed that 13,500 residential deals were made by Tehran's registered realtors during the fourth month of the current year that ended on July 22, indicating a respective monthly and annual decline of 9.2% and 7% respectively.
However, the average price of each square meter of a residential unit in Iran's capital reached 69.7 million rials ($1,585) during that month, signaling an increase of 7.1% compared to the month before and a whopping 54.2% surge compared to the same month of the previous year.
The total number of residential deals in Tehran during the period reached 52,600. This shows a small year-on-year increase of 1.7%. But during this period, the average price of each square meter of a house reached 62.5 million rials ($1,422), which is higher by 41.3% compared to the first four months of last year, according to Financial Tribune.
A minor contraction of 0.01% in terms of the number of home deals and a relatively tiny increase of 5.2% in terms of prices were registered during the first four months of the previous fiscal year. The significant annual price hike discrepancy –41.3% in the fiscal 2018-19 and 5.2% in the fiscal 2017-18–is due to two main factors: one is the long-awaited boom phase in the housing sector and the other is a months-long currency crisis that has affected all other markets.
According to the CBI report, a majority of residential deals in Tehran during the fourth month of the current year were for newly-built units dating back to five years with a 43.8% share.
At 13.2%, District 5 grabbed the highest share of total deals from the 22 districts of Tehran. Ten districts had an overall share of 71%.
In terms of prices, District 5 once again witnessed the highest increase during the fourth month, as the price of each square meter of a home jumped by an eye-watering 71.8% compared to the third month.
District 12 had the lowest price growth at 14.8%. The highest average price belonged to the northern affluent District 1 at 151.1 million rials ($3,438) with a 55.2% monthly increase and the lowest was registered in District 18 at 31 million rials ($705) and a monthly rise of 36.5%.
CBI reports on rent price increases. According to the regulator, rent prices in Tehran and across all urban areas in Iran grew by 13.6% and 11.1% when compared to the previous month and the fourth month of the previous year respectively.