EghtesadOnline: The Statistical Center of Iran has published its latest report on home and land prices in addition to rents, which indicates an overall increase across Tehran during the second quarter of the current Iranian year (June 22-Sept. 22), the summer season of the fiscal 2019-20.
According to the report published on the 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 131.7% in Q2 compared with the corresponding period of last year.
Prices increased by 10% compared with the preceding quarter (Q1 of the current Iranian year.)
The minimum price of each square meter of land or land of a rundown property in Tehran stood at 25.69 million rials ($221) while the maximum was at 725 million rials ($6,250), bringing the average to 186.6 million rials ($1,608), according to Financial Tribune.
The number of land deals made during the current Iranian year’s Q2 decreased by 55.4% compared with the similar period of last year and 49.3% when compared with the first quarter of the current year.
The average area of each dealt land or land of a rundown property in real estate agencies across Tehran was reported at 270 square meters by SCI.
As for home prices, the average price of each square meter of residential floor area in the capital city surged by 80.1% in Q2 on a year-on-year basis.
When compared with the previous quarter, prices indicated a growth of 4.5%.
The minimum price of each square meter of residential floor area across urban areas in Q2 stood at 20 million rials ($166) with the maximum price registered at about 638.88 million rials ($172).
The average price was at about 136.87 million rials ($1,179).
In terms of the number of deals for residential floor areas, the current year’s Q2 saw a decline of 70.2% compared with the Q2 of last year.
Against Q1 of the current year, the number of such deals registered a decrease of 49.6%.
SCI put the average dealt floor area at 86 square meters while putting the average age of residential units at 11 years.
The Statistical Center of Iran also disclosed figures for 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 31.2% during the current year’s Q2 compared with the Q2 of last year while they grew by 8.1% compared with the first quarter of the current year.
The minimum price of each square meter of residential floor area rented in Iran’s Tehran stood at 32,500 rials (28 cents) with the maximum being registered at 2.17 million ($18.7) bringing the average to 435,420 rials ($3.7) per month.
Compared with the second quarter of last year, the current year’s second quarter rent deals decreased by 8.9% whereas they increased by 40.4% compared with the preceding quarter.
SCI reported the average area of total rent deals at 82 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.