EghtesadOnline: The Statistical Center of Iran has published its latest report on home and land prices as well as rents in urban areas across the country during the fourth quarter of the last Iranian year (Dec. 22, 2019-March 19).
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 (residential units that are considered old to a degree that only the underlying land is useful for construction) in urban areas went up by 63.4% in Q4 compared with the corresponding period of the year before.
Prices increased by 15.3% compared with the preceding quarter (Q3 of the last Iranian year.)
The minimum price of each square meter of land or land of a rundown property in the capital city stood at 930,000 rials ($5.1) while the maximum was at 750 million rials ($4,189), bringing the average to 46.8 million rials ($261).
The number of land deals made during the last Iranian year’s Q4 decreased by 8.1% compared with the similar period of the year before, but increased 67.3% when compared with the third quarter of last year.
The average area of each dealt land or land of a rundown property in real-estate agencies across the urban areas was reported at 240 square meters by SCI.
The report also shows the average price of each square meter of residential floor area in the capital city surged by 65.6% in Q4 on a year-on-year basis. When compared with the previous quarter, prices indicated a growth of 15.7%.
The minimum price of each square meter of residential floor area across urban areas during Q4 stood at 1.15 million rials ($6.42) with the maximum price registered at about 714.25 million rials ($3,990). The average price was about 48.45 million rials ($270).
In terms of the number of deals for residential floor areas, the last year’s Q4 saw a decline of 10.2% compared with the Q4 of the year before. Against the Q3 of last year, the number of such deals registered an increase of 82.9%.
SCI put the average dealt floor area at 106 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.
The average rent reportedly increased by 44.6% during last year’s Q4 compared with the Q4 of the year before, while they grew by 11.5% compared with the third quarter of last year.
The minimum price of each square meter of residential floor area rented in urban areas stood at 1,625 rials (around one cent) with the maximum being registered at 2.7 million ($15), bringing the average to 160,603 rials (90 cents) per month.
Compared with the fourth quarter of the year before, last year’s Q4 rent deals decreased by 43.8%, while they declined by 33.9% compared with the preceding quarter.
SCI reported the average area of total rent deals at 101 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.
As sudden changes in the number of deals in major cities led 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.