EghtesadOnline: Housing prices in five out of 22 districts of the capital city, Tehran, nearly tripled over the past two years.
According to a report by ISNA, home prices in District 18 increased by 227%, District 10 by 214%, District 9 by 203%, District 17 by 199% and District 20 rose by 197%.
The lowest price growth from Feb. 20, 2018, to Feb. 20, 2020 were registered for homes located in District 2 with 160%, District 1 with 167%, districts 5 and 12 with 171% and District 6 with 172%.
From Feb. 20, 2019, to Feb. 20, 2020, districts 20, 18, 12, 17 and 19 posted the sharpest price rises with 101%, 70%, 54%, 51% and 49% while districts 1, 2, 13, 14 and 22 had the lowest increase of home prices with 37%, 38%, 39%, 40% and 40% respectively.
The average price of each square meter of a residential unit in Tehran stood at 139.4 million rials ($829.76) in the month ending Jan. 20, 146.7 million rials ($873.21) in the month ending Feb. 19 and 159.3 million rials ($948.21) in the month leading to March 19, according to the Central Bank of Iran's data.
The annual home price increase was 49% in the month ending Jan. 20, 52% in the month ending Feb. 19 and 48% in the month ending March 19.
The two-year index shows home prices in the month ending Jan. 20 increased by 168% compared with the month ending Jan. 20, 2018; they grew by 173% in the month ending Feb. 19 compared with the month ending Feb. 19, 2018, and jumped by 180% in the month ending March 19 compared with the month ending March 20, 2018.
Monthly Data for Tehran's Housing Market
The CBI's latest data show 1,243 homes were sold in Tehran during the first month of the current fiscal year (March 20-April 19) to register an 87.8% decline compared to the month before. In the month ending March 19, a total of 10,214 home deals were finalized.
The number of home sales in the capital city plummeted by 63.7% compared with last year's similar month. A total of 3,423 home deals were concluded in the month ending April 20, 2019.
The average price of each square meter of a residential unit in Tehran stood at 152.95 million rials ($910.41) during the month under review, indicating a 2.1% decrease compared with the preceding month. Compared with the same month of last year, average prices showed a surge of 35.7%.
Newly-built residential units—those up to five years old—grabbed the highest proportion of the total number of deals with 41.5%, more than 1.5 percentage points compared with the same month of last year.
The share of homes six to 10 years old increased by 0.5% and those above 20 years rose by 1.9% year-on-year. Homes that were six to 10 years old and those between 16 and 20 years accounted for 18.4% and 15.5% of total deals respectively.
The share of deals for homes with a lifespan of 11-15 years decreased from 13% of the total deals in the last year’s same month to 10.9% this year. Homes above 20 years old posted a share of 13.6% of total deals, compared with 11.7% of the same month of last year.
The distribution of the dealt properties shows that among Tehran's 22 districts, District 5 grabbed the highest share of total deals at 15.5%. It was followed by districts 2 and 4 with a respective share of 8.5% and 8.2%.
All-in-all, 10 districts (five, two, four, 10, one, seven, six, 15, three and eight) grabbed the lion's share of the deals at 72.4% with the remaining 12 districts holding a 27.6% share.
Among Tehran's 22 districts, District 1 registered the highest average home price of 313.2 million rials ($1,864) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 74.1 million rials ($441). These numbers show a respective increase of 29% and 51.8% YOY.
Residential units with an average price range of 90 million rials ($535.7) to 105 million rials ($625) per square meter were the highest in demand, as they grabbed a 9.7% share of all deals. They were followed by units priced at 75 million rials ($446) to 90 million rials per square meter with a share of 8.3%.
From the total number of deals, 53.8% belonged to homes cheaper than the average per-square meter price of the city (i.e. 152.95 million rials or $910).
Residential units with a floor area of 60-70 square meters registered the highest number of deals with a 12.6% share of total deals.
Units with an area of 50-60 square meters and 70-80 square meters came next with a respective share of 12.5% and 11.8%. All-in-all, units with an area of less than 90 square meters had a 57.9% share of total deals.
CBI data further show that Tehran’s homes worth between 4.5 billion rials ($27,777) to 6 billion rials ($37,037) were highest in demand with a 10.3% share of total deals.
Homes with price tags of between 6 billion rials and 7.5 billion rials ($44,642) and those between 3 billion rials ($17,857) and 4.5 billion rials came next with respective shares of 9.4% and 9.2% of total deals. Collectively, homes valued under 12 billion rials ($74,074) had a 51.6% share of total home deals.
The central regulator also reported tenancy price changes in the capital city and across other urban areas.
According to the CBI report, the price of rented residential units in Tehran and across all urban areas increased by 28.7% and 31% respectively during the first month of the current year compared with the similar month of last year.