Tehran Housing Market Review
EghtesadOnline: A total of 5,102 homes were sold in Tehran during the third month of the current fiscal year (May 22-June 21), registering a 29.6% increase compared with the preceding month but a 52.7% decrease compared with the same month of last year.
Data published by the Central Bank of Iran on its website also indicate that the average price of each square meter of a residential property in Tehran stood at 296.73 million rials ($1,206) during the month under review, showing a surge of 56.6% over last year’s same month, as prices averageed 189.48 million rials ($770). Home prices in the capital city grew by 3% compared to 287.96 million rials ($1,170) in the second month of the current fiscal year.
Details of Property Deals
The CBI data also show that during the month ending June 21, newly-built residential properties up to five years old constituted the highest proportion of deals at 35.8% (or 1,827 deals), down by 3.1 percentage points compared with the same month of last year.
That lost share was added to homes that were six to 10 years, 11 to 15 years and more than 20 years old. Homes with a lifespan of six to 10 years, 11 to 15 years and above 20 accounted for 21.4%, 13.7% and 13% of total deals compared with the same month of last year’s 18.9%, 12.7% and 12.5%, respectively.
The share of homes that were between 16 and 20 years old was 16.1% of the total home deals during the month ending June 21, compared with 17% of the same month of last year.
The distribution of dealt properties shows that among Tehran’s 22 districts, District 5 grabbed the highest share of total deals at 13.9%. It was followed by districts 10 and four with a share of 9.8% and 8.1%, respectively.
All-in-all, 10 districts (five, 10, four, two, seven, 15, 14, eight, one and 11) grabbed the lion's share of the deals at 71.8% with the remaining 12 districts holding a 28.2% share.
Among Tehran's 22 districts, District 1 registered the highest average home price of 663 million rials ($2,695) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 126.1 million rials ($512). The aforesaid numbers show a respective increase of 60.9% and 41.9% YOY.
Residential units with an average price range of 150 million rials ($610) to 200 million rials ($813) per square meter were the most popular in Tehran during the Iranian month under review, as they accounted for 18.6% of all deals. They were followed by units priced at 200 million rials to 250 million rials ($1,016) per square meter with a share of 15.9% and homes priced at 250 million rials to 300 million rials ($1,210) per square meter with a share of 11.7%.
From the total number of deals, 60.8% belonged to homes cheaper than the average per-square meter price of the city (i.e., 296.73 million rials or $1,206).
Residential units with a floor area of 60-70 square meters registered the highest number of sales with a 14.8% share of total deals.
Units with an area of 50-60 square meters came second with a share of 14%. All-in-all, residential properties with an area of less than 80 square meters had a 56.1% share of total deals.
CBI data further show Tehran’s homes worth between 5 billion rials ($20,325) and 10 billion rials ($40,650) were the most popular with a 20.2% share of total deals. These were followed by homes with a price tag of between 10 billion rials and 15 billion rials ($60,975) and those priced at between 15 billion rials and 20 billion rials ($81,300) with a share of 18.2% and 11.9% of total deals.
Collectively, homes valued under 20 billion rials had a 53.4% share of total home deals in Tehran during the third month of the current year.
The central regulator also reported changes in tenancy prices in the capital city and across other urban areas.
According to CBI, the price of rented residential units in Tehran and across urban areas increased by 33.9% and 37.6% respectively during the third month of the current Iranian year compared with the corresponding month of the year before.