Tehran Home Sales Drop as Prices Rise 104 Percent YOY
EghtesadOnline: New data released by the Central Bank of Iran indicate 3,423 homes were sold in Tehran in the first month of the current Iranian year (March 21-April 20) to register a 73.3% decline compared to the month before and 32.2% compared to the similar month of the year before.
The hike in home prices in the capital city continued their last year’s growing trend.
The average price of each square meter of a residential unit in Tehran stood at about 112.69 million rials ($810), showing a year-on-year surge of about 104% as average prices reached 55.28 million rials ($397) in the similar month of last year.
Home prices in the capital grew by 2.1% compared with 110.41 million rials ($794) in the 12th month of last year, Financial Tribune reported.
Property Deals in Detail
Data published by the CBI on its website indicate that newly-built residential units up to five years old grabbed the highest share of the total of 3,423 deals with 40%, down by 2.5% compared with the same month of last year.
That lost share was added to homes six to 10 years old and those between 16 and 20 years, registering a 17.9% and 17.4% share of total deals respectively.
The share of dealings of homes above 20 years has also increased from 10.5% of the total deals last year to 11.7% this year; they had the smallest share of total deals in the month ending April 20. Homes 11 to 15 years old posted a share of 13% of total deals.
The distribution of the dealt properties shows that among Tehran's 22 districts, District 5 once again grabbed the highest share of total deals at 16.5%. It was followed by districts 4 and 2 with a respective share of 9.5% and 7.9%.
All-in-all, 10 districts (five, four, two, 10, 14, 15, seven, eight, one and three) grabbed the lion's share of the deals at 71.3% with the remaining 12 districts holding a 28.7% share.
District 14 registered the highest average annual price growth at a whopping 133.1% during the first month of the current year. District 12 saw the lowest year-on-year average price hike at 65.1%.
Among Tehran's 22 districts, District 1 registered the highest average home price at 242.8 million rials ($1,746) per square meter. District 18 offered the capital city's cheapest homes with average per-square meter prices standing at 48.8 million rials ($351). Aforesaid numbers show a respective increase of 108.6% and 84.7% YOY.
Residential units with an average price range of 60 million rials ($431) to 75 million rials ($539) per square meter were the most popular in Tehran, as they grabbed a 12.7% share of all deals.
They were followed by units priced at 75 million rials to 90 million rials ($647) per square meter and 45 million rials ($323) to 60 million rials ($431) per square meter with a share of 11.7% and 10.1%, respectively.
Of the total number of deals, 57% belonged to homes cheaper than the average per-square meter price of the city (112.69 million rials or $810).
Residential units with a floor area of 60-70 square meters registered the highest number of deals with a 15.2% share of total deals each.
Units with an area of 50-60 square meters and 70-80 square meters came second and third with a share of 15% and 11.9% respectively. All-in-all, units with an area of less than 80 square meters had a 55.3% share of total deals.
CBI data further show that Tehran’s homes worth between 3 billion rials ($21,582) to 4.5 billion rials ($32,374) were the most popular with a 17.5% share of total deals.
Homes with price tags of between 4.5 billion rials ($32,374) and 6 billion rials ($43,165) and between 6 billion rials and 7.5 billion rials ($53,956) came next with a respective share of 11.3% and 10.6% of total deals.
Collectively, homes valued under 7.5 billion rials ($53,956) had a 51.1% share of total home deals in Tehran during the first month of the current year.
Tenancy in Urban Areas
The central regulator also reports on changes in tenancy prices in the capital and across the country.
According to CBI, the price of rented residential units in Tehran and across all urban areas of Iran increased by 21.9% and 18.8% respectively during the first month of the current year compared with the similar period of last year.