Central Bank of Iran Reviews Tehran's Housing Market
EghtesadOnline: A total of 14,047 homes were sold in the capital during the fourth month of the current fiscal year (June 21-July 21), registering a 30.3% rise compared with the preceding month.
They saw a year-on-year growth of 193.3% compared with the 4,790 deals in the corresponding month of last year.
Data published by Central Bank of Iran on its website indicate that the average price of each square meter of a residential property in Tehran stood at 209.09 million rials ($886) during the month under review, showing a surge of 56.6% over last year’s same month as average prices were registered at 133.51 million rials ($566) then.
Home prices in the capital city increased by 10.4% compared to 189.48 million rials ($803) in the third month of the current year.
The CBI data also show that during the month ending July 21, newly-built residential properties up to five years old constituted the highest proportion of deals at 38.6% (or 5,418 deals), down by 1.6 percentage points compared with the same month of last year.
That lost share was added to homes six to 10 years old and those above 15 years. Homes with a lifespan of six to 10 years and 16 to 20 years accounted for 19.3% and 17% of total deals respectively.
The share of deals involving homes that were 11 to 15 years old decreased from 13.6% of the total deals of last year’s same month to 13% this year. Homes above 20 years posted a share of 12.2% of total deals, compared with 12% 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 14.9%. It was followed by districts 4 and 2 with a respective share of 8.7% and 8.6%.
All-in-all, 10 districts (five, four, two, 10, 14, seven, one, eight, three and 15) grabbed the lion's share of the deals at 73.1% with the remaining 12 districts holding a 26.9% share.
Among Tehran's 22 districts, District 1 registered the highest average home price of 453 million rials ($1,921) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 96.3 million rials ($408). The aforesaid numbers show a respective increase of 51.8% and 58.2% YOY.
Residential units with an average price range of 140 million rials ($593) to 160 million rials ($678) per square meter were the most popular in Tehran during the Iranian month under review, as they grabbed a 9.7% share of all deals. They were followed by units priced at 120 million rials ($508) to 140 million rials ($593) per square meter with a share of 9.5% and homes priced at 100 million rials ($424) to 120 million rials ($508) per square meter with a share of 8.8%.
From the total number of deals, 56.4% belonged to homes cheaper than the average per-square meter price of the city (i.e. 209.1 million rials or $886).
Residential units with a floor area of 50-60 square meters registered the highest number of sales with a 14.2% share of total deals.
Units with an area of 60-70 square meters and 70-80 square meters came second and third with shares of 14% and 11.6%, respectively.
All-in-all, residential properties with an area of less than 80 square meters had a 52.2% share of total deals.
CBI data further show that Tehran’s homes worth between 6 billion rials ($25,445) and 8.5 billion rials ($36,047) were the most popular with a 14.2% share of total deals. These were followed by homes with a price tag of between 3.5 billion rials ($14,843) and 6 billion rials ($25,445) and those priced at 8.5 billion rials ($36,047) and 11 billion rials ($46,649) with a share of 11.5% and 10.1% of total deals, respectively.
Collectively, homes valued under 16 billion rials ($67,854) had a 54.3% share of total home deals in Tehran during the fourth month of the current year.
During the four months of the current Iranian year that started on March 20, the number of home deals finalized in Tehran totaled 37,378, which shows a 42% rise year-on-year.
In the same period, the average price of each square meter of a home in the capital stood at 180.31 million rials ($764), signaling a YOY surge of 42.6% compared with the four months of last year.
Tenancy in Urban Areas
The central regulator also reports changes to tenancy prices in the capital city and across the urban areas.
According to CBI, the price of rented residential units in Tehran and across urban areas increased by 27.6% and 31% respectively during the fourth month of the current year compared with the similar month of last year.