EghtesadOnline: For the first time in months, home prices in Tehran have declined.
A new report released by the Central Bank of Iran shows the average price of each square meter of a residential unit in Tehran stood at 130.25 million rials ($1,157) in the fifth month of the current Iranian year (ended Aug. 22), indicating a 2.4% decline compared to 133.51 million rials ($1,186) in the fourth month of the year.
Prices, however, showed an annual surge of 76%, as average prices were registered at 73.99 million rials ($657) in last year’s same month.
A total of 3,292 homes were sold in the capital during the fifth month of the year, signaling a year-on-year decline of 72.6% compared with the 12,006 deals in the corresponding month of last year. The number of property deals fell by 31.3% compared with the preceding month, according to Financial Tribune.
Data published by CBI on its website indicate that during the month under review, newly-built residential units up to five years old grabbed the highest share of the total of 3,292 deals at 41.8%, down by 2.5 percentage points compared with the same month of last year.
That lost share was added to homes with a lifespan of six to 10 years and those above 20 years, which registered an 18.8% and 11.8% share of total deals. The share of deals involving homes that were 11 to 15 years old has also decreased from 14.6% of the total deals last year to 12.7% this year.
Homes 16 to 20 years old posted a share of 14.9% of total deals, indicating no change compared with the same month of last year.
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 12.1%. It was followed by districts 2 and 4 with a respective share of 9.4% and 8.9%.
All-in-all, 10 districts (five, two, four, 10, 14, seven, eight, 15, one and six) grabbed the lion's share of the deals at 72.1% with the remaining 12 districts holding a 27.9% share.
Among Tehran's 22 districts, District 1 registered the highest average home price of 282.1 million rials ($2,507) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 59.8 million rials ($531). These figures show a respective increase of 79% and 92.3% year-on-year.
Residential units with an average price range of 90 million rials ($800) to 105 million rials ($933) per square meter were the most popular in Tehran during the month under review, as it grabbed a 10.9% share of all deals.
They were followed by units priced at 60 million rials ($533) to 75 million rials ($666) per square meter and those priced at 75 million rials to 90 million rials per square meter with a share of 10.6% and 10.5%, respectively.
Of the total number of deals, 58.7% belonged to homes cheaper than the average per-square meter price of the city (130.25 million rials or $1,157).
Residential units with a floor area of 50 to 60 square meters registered the highest number of deals with a 15.9% share of total deals.
Units with an area of 60-70 square meters and 70-80 square meters stood at second and third places with a share of 13.4% and 12.1% respectively. All-in-all, units with an area of less than 80 square meters had a 55.9% share of total deals.
CBI data further show that homes in Tehran worth between 3 billion rials ($26,666) to 4.5 billion rials ($40,000) were the most popular with a 15% share of total deals.
Homes with a price tag of between 4.5 billion rials and 6 billion rials ($53,333) and those between 6 billion and 7.5 billion ($66,666) came next with a share of 12.3% and 9.4% of total deals.
Collectively, homes valued below 9 billion rials ($80,000) had a 52.9% share of total home deals in Tehran during the fifth month of the current year.
During the first five months of the current fiscal year (March 21-Aug. 22), the number of home deals finalized in Tehran totaled 29,619, which was down 54.1% YOY.
In the same period, the average price of each square meter of a home in the capital stood at 127.23 million rials ($1,130), signaling a YOY surge of 96.4% compared to the five months of last year.
Tenancy in Urban Areas
The central regulator also reports changes to 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 in Iran increased by 28.1% and 26.1% respectively during the fifth month of the current year compared with the similar month of last year.