EghtesadOnline: The Statistical Center of Iran has published a new report on home and land prices, as well as rent levels, in the capital city Tehran during the third quarter of the current Iranian year (Sept. 23-Dec. 21, 2019).
According to the report, published on SCI’s website, 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 86.3% in Q3 compared with the corresponding period of last year, Financial Tribune reported.
Prices increased by 0.4% compared with the preceding quarter (Q2 of current Iranian year from June 22 to Sept. 22, 2019.)
The minimum price of each square meter of land or land of a rundown property in Tehran stood at 25.25 million rials ($180) while the maximum was at 741.86 million rials ($5,280), bringing the average to 187.33 million rials ($1,333).
The report shows the number of land deals in Q3 remained unchanged compared with the similar period of last year, but increased 47.4% compared with Q2 of the current year.
The average area of each dealt land or land of a rundown property in Tehran’s real-estate agencies was reported at 245 square meters.
This is while the average price of each square meter of residential floor area in the capital city surged by 44.8% in Q3 on a year-on-year basis.
Compared with the previous quarter, prices saw a 0.6% decline.
The minimum price of each square meter of residential floor area across urban areas in Q3 stood at 20 million rials ($142) with the maximum price registered at 642.87 million rials ($4,575). The average price was about 136.04 million rials ($968).
In terms of the number of deals for residential floor areas, the current year’s Q3 saw a decline of 27.3% compared with the Q3 of last year.
Against Q2 of the current year, the number of home deals saw an increase of 55.2%.
SCI put the average dealt floor area at 86 square meters, while putting the average age of residential units at 11 years. It also disclosed monthly home rents, plus 3% collateral legally paid to rent 1 square meter of residential floor area.
The center also reported that average rents increased by 31.1% in the current year's Q3 compared with Q3 of last year while they grew by 1.4% compared with the second quarter of the current year.
The minimum price of each square meter of residential floor area rented in Tehran stood at 35,000 rials (25 cents) with the maximum being 2.27 million ($16), bringing the average to 441,470 rials ($3) per month.
Compared with the third quarter of last year, the current year’s third quarter rent deals decreased by 7.3% whereas they decreased by 28.8% compared with the preceding quarter.
SCI put the average area of total rent deals to be 80 square meters and 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.