EghtesadOnline: The Statistical Center of Iran has published a new report on home and land prices, as well as rents, in the capital city during the first quarter of the current Iranian year (March 21-June 21), which indicates an all-round increase both compared to the previous quarter and to the corresponding quarter of the year before.
The number of property deals, however, registered a decline.
According to the report, published on the official website of SCI, the average price of each square meter of land or land of a rundown residential property (residential units that are considered old to a degree that only the underlying land is useful for construction) in Tehran went up by 174.6% in Q1 compared with the corresponding period of last year.
Prices increased by 16.6% compared with the preceding quarter (Q4 of last Iranian year from Dec. 22, 2018, to March 20, 2019), Financial Tribune reported.
The minimum price of each square meter of land or land of a rundown property in Tehran stood at 20.13 million rials ($172) while the maximum was at 721.31 million rials ($6,191), bringing the average to 169.56 million rials ($1,455).
The report also shows the number of land deals in Q1 decreased by 22.5% compared with the similar period of last year and 12.5% compared with Q4 of last year.
The average area of each dealt land or land of a rundown property in Tehran’s real estate agencies was reportedly 246 square meters.
This is while the average price of each square meter of residential floor area in the capital city surged by 109.6% in Q1 on a year-on-year basis.
Compared with the previous quarter, prices indicated a 22.7% growth.
The minimum price of each square meter of residential floor area across urban areas in Q1 stood at 20 million rials ($171) with the maximum price registered at 638 million rials ($5,481).
The average price was about 130.09 million rials ($1,116).
In terms of the number of deals for residential floor areas, the current year’s Q1 saw a decline of 45.3% compared with the Q1 of last year.
Against Q4 of last year, the number of home deals saw a decline of 23.2%.
SCI put the average dealt floor area at 88 square meters while putting the average age of residential units at 11 years. It also disclosed figures on monthly home rents plus 3% collateral legally paid to rent 1 square meter of residential floor area.
It reported that the average rent prices increased by 35% in the current year's Q1 compared with Q1 of last year while they grew by 17.4% compared with the fourth quarter of last year.
The minimum price of each square meter of residential floor area rented in Tehran stood at 32,710 rials (28 cents) with the maximum being 2.2 million ($18.8), bringing the average to 402,673 rials ($3.4) per month.
Compared with the first quarter of last year, the current year’s first quarter rent deals decreased by 18.5% whereas they increased by 3.4% compared with the preceding quarter.
SCI reported the average area of total rent deals at 80 square meters and put the average age of rental homes at 14 years.
All figures reported by SCI employ data extracted from the state-run Tenement Management Information System operated by the Ministry of Roads and Urban Development.
Established with the aim of making home purchase and renting deals more transparent, the system legally requires all certified real estate agencies to register their deals.
In light of the fact that sudden changes in the number of deals in major cities lead to a significant change in prices across a province or the whole country, the report uses a balanced weighted average for its reports to identify real price changes by eliminating the effect of home deals.
The related weights used were based on occupied residential units surveyed during a general census conducted in the fiscal 2015-16.