EghtesadOnline: The housing market in Tehran is on track to recovery after a seasonal slump at the beginning of the year (started March 21) due to the long Iranian New Year holiday, latest data published by the Central Bank of Iran show.
A total of 5,500 homes were sold in Tehran during the fifth month of the current fiscal year (June 22-Aug. 22), registering an increase of 8.4% compared with the preceding month but a 39.4% decrease compared with the same month of last year.
This is the fourth consecutive month of rising sales.
The CBI data also indicate that the average price of each square meter of a residential property in Tehran stood at 309.7 million rials ($1,100) during the month under review, showing a surge of 34% over last year’s same month as average prices were registered at 231.07 million rials ($820) then. Home prices in the capital city grew by 3.1% compared to 300.45 million rials ($1,067) in the fourth month of the current year.
Details of Property Deals
The CBI data also show that during the month ending Aug. 22, newly-built residential properties up to five years old constituted the highest proportion of deals at 32.2% (or 1,825 deals), down by 5.3 percentage points compared with the same month of last year.
The lost share was added to homes with a lifespan of six to 10 years, 11 to 15 years, 16 to 20 years and above 20 years. They accounted for 22.4%, 14.9%, 17.8% and 11.8% of total deals compared with the same month of last year’s 18.3%, 13%, 17% and 13.3%, respectively.
The distribution of dealt properties shows that among Tehran’s 22 districts, District 5 grabbed the highest share of total deals at 16.1%. It was followed by districts 10 and two with a share of 10.8% and 8.8%, respectively.
All-in-all, 10 districts (five, 10, two, four, 14, one, seven, eight, 15 and 11) grabbed the lion's share of the deals at 73.2% with the remaining 12 districts holding a 26.8% share.
Among Tehran's 22 districts, District 1 registered the highest average home price of 645.6 million rials ($2,291) per square meter. District 18 offered the capital city's cheapest homes with an average per-square meter price of 144.1 million rials ($511). The aforesaid numbers show a respective increase of 22.2% and 47.8% YOY.
Residential units with an average price range of 150 million rials ($532) to 200 million rials ($710) per square meter were the most popular in Tehran during the Iranian month under review, as they accounted for 17.2% of all deals. They were followed by units priced at 200 million rials to 250 million rials ($888) per square meter with a share of 15.9% and homes priced at 250 million rials to 300 million rials ($1,065) per square meter with a share of 12.7%.
From the total number of deals, 59.4% belonged to homes cheaper than the average per-square meter price of the city (i.e., 309 million rials).
Residential units with a floor area of 50-60 square meters registered the highest number of sales with a 14.9% share of total deals.
Units with an area of 60-70 and 70-80 square meters ranked lower with a respective share of 14.2% and 12.7%. All-in-all, residential properties with an area of less than 80 square meters had a 57% share of total deals.
CBI data further show that Tehran’s homes worth between 10 billion rials ($35,523) and 15 billion rials ($53,285) were the most popular with an 18.3% share of total deals. These were followed by homes with a price tag of between 5 billion rials ($17,761) and 10 billion rials and those priced at between 15 billion rials and 20 billion rials ($71,047) with a respective share of 17.7% and 12.7% of total deals.
Collectively, homes valued under 20 billion rials had a 50.6% share of total home deals in Tehran during the fourth month of the current year.
Tenancy in Urban Areas
The central regulator also reports changes in 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 37.8% and 41.2% respectively during the fifth month of the current Iranian year compared with the corresponding month of last year.