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 in the first quarter of the current Iranian year (March 20-June 20), the spring season of fiscal 2020-21.
According to the report published on the 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 Tehran went up by 50.4% in Q1 compared with the corresponding period of the year before. Prices increased by 22.6% compared with the preceding quarter (Q4 of last Iranian year.)
The minimum price of each square meter of land or land of a rundown property in the capital city stood at 36.92 million rials ($166) in District 20 while the maximum was at 920 million rials ($4,153) in District 1, bringing the average to 255.1 million rials ($1,151).
The number of land deals in Q1 of the current Iranian year decreased by 18.9% compared with the similar period of last year and 20.9% when compared with the fourth quarter of the last year.
Among 22 districts of Tehran Municipality, District 2 accounted for the highest number of land or land of a rundown residential property deals with 10.2% and District 19 accounted for the lowest number with 1.2% of the total deals.
The average area of each dealt land or land of a rundown property in real-estate agencies across Tehran was estimated to be 186 square meters by SCI.
The report also shows that the average price of each square meter of residential floor area in the capital city rose by 43.8% in Q1 on a year-on-year basis. When compared with the previous quarter, prices indicated a rise of 22.8%.
The minimum price of each square meter of residential floor area across urban areas in Q1 stood at 27.14 million rials ($122) in District 15 with the maximum price registered at about 902.31 million rials ($4,037) in District 3. The average price was about 188.23 million rials ($850).
In terms of the number of deals for residential property, the current year’s Q1 saw a rise of 3.9% compared with the Q1 of last year. Against Q4 of last year, such deals decreased by 29.3%.
District 5 accounted for the highest number of residential deals with 15% and District 19 accounted for the lowest number with 0.9% of the total deals.
SCI put the average dealt floor area at 89 square meters while putting the average age of residential units at 12 years. It also disclosed figures for monthly home rent levels plus 3% collateral paid to rent one square meter of a residential property.
It reported that the average rent prices increased by 38.4% during the current year’s Q1 compared with Q1 of last year, while they grew by 9.8% compared with the fourth quarter of last year.
The minimum price of each square meter of residential floor area rented in Tehran stood at 37,143 rials (16 cents) in District 18 with the maximum registered at 3 million ($13.5) in District 3, bringing the average to 557,305 rials ($2.5) per month.
Compared with the first quarter of last year, the current year’s Q1 rent deals decreased by 41.6%. However, they increased by 17.8% when compared with the preceding quarter.
District 5 accounted for the highest number of rent deals with 17.4% and District 16 accounted for the lowest number with 0.9% of total deals.
SCI reported the average area of total rent deals at 83 square meters and put the average age of rental homes at 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 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.