EghtesadOnline: The Statistical Center of Iran has published its latest report on home and land prices, as well as rents, which indicates an all-out increase across urban areas 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 official website of SCI, the average price of each square meter of land or land of a rundown residential property (units that are considered old to a degree that only the underlying land is useful for construction) in urban areas went up by 110.7% in Q2 compared with the corresponding period of last year.
Prices increased by 9.3% 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 urban areas stood at 634,000 rials ($4.9) while the maximum price was 725 million rials ($5,664), bringing the average to 36.35 million rials ($283), Financial Tribune reported.
The number of land deals in Q2 decreased by 15% compared with the similar period of last year and 28.3% 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 urban areas was reported at 267 square meters by SCI.
According to the report, the average price of each square meter in an urban residential area surged by 64.4% in Q2 on a year-on-year basis. Compared with the previous quarter, prices indicated a growth of 3.7%.
The minimum price of each square meter of urban residential area in Q2 stood at 1.06 million rials ($8.3) with the maximum price registered at about 638.88 million rials ($4,991). The average price was at 36.63 million rials ($286).
In terms of the number of deals for residential floor areas, the current year’s Q2 saw a decline of 57.7% compared with the Q2 of last year. Against the Q1 of current fiscal year, the number of such deals registered a decline of 37.5%.
SCI put the average dealt floor area at 108 square meters while putting the average age of residential units at 12 years. It also disclosed figures for monthly home rents, plus 3% collateral legally paid to rent one square meter of residential floor area.
It reported that the average rent prices increased by 24.9% during the current year’s Q2 compared with the Q2 of last year while they grew by 6.7% compared with the first quarter of the current year.
The minimum price of each square meter of residential floor area rented in urban areas stood at 2,254 rials (1.7 cents) with the maximum registered at 2.17 million ($17), bringing the average to 135,011 rials ($1.05) per month.
Compared with the second quarter of last year, the current year’s Q2 rent deals decreased by 3.6% whereas they increased by 49.5% compared with the preceding quarter.
SCI reported the average area of total rent deals at 99 square meters and put the average age of rental homes at 13 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.