Tehran Housing Market Reviewed
EghtesadOnline: The Statistical Center of Iran has published its latest report on home and land prices as well as rent levels in the capital city Tehran during the second quarter of the current Iranian year (June 21-Sept. 21), the summer season of the fiscal 2020-21.
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 86.5% in Q2 compared with the corresponding period of last year.
Prices increased by 36.4% 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 the capital city stood at 50.3 million rials ($201) while the maximum was at 1.55 billion rials ($6,200), bringing the average to 347.93 million rials ($1,391).
The number of land deals made during the current Iranian year’s Q2 increased by 92.2% compared with the similar period of last year and 20.1% 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 reportedly 210 square meters.
The report also shows that the average price of each square meter of residential floor area in the capital city surged by 76.4% in Q2 on a year-on-year basis. Compared to the previous quarter, prices indicated a growth of 28.3%.
The minimum price of each square meter of residential floor area across urban areas during Q2 stood at 35.82 million rials ($143) with the maximum price reaching 1.3 billion rials ($5,200). The average price was about 241.46 million rials ($965).
In terms of the number of deals for residential floor areas, the current year’s Q2 saw a rise of 162.5% compared with the Q2 of last year. Against Q1 of the current year, the number of such deals registered an increase of 27.4%.
SCI put the average dealt floor area at 88 square meters while putting the average age of residential units at 12 years.
It also disclosed figures for monthly home rents plus the 3% collateral legally paid to rent one square meter of residential floor area.
SCI reported that the average rent price increased by 47.4% during the current year’s Q2 compared with the Q2 of last year while they grew by 15.2% compared with the first quarter of the current year.
The minimum price of each square meter of residential floor area rented in Tehran stood at 41,176 rials (16 cents) with the maximum being registered at 4.9 million ($19.6) bringing the average to 641,911 rials ($2.56) per month.
Compared with the second quarter of last year, the current year’s Q2 rent deals increased by 10.2%, showing a rise of 164.9% compared with the preceding quarter.
SCI reported that the area of total rent deals averaged 79 square meters, with the average age of rental homes reaching 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.
As 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.