Central Bank: Housing Prices in Tehran Doubled Over One Year
The Central Bank of Iran announced in a report published on Saturday, March 1, on its website that housing prices in Tehran increased by 97.2 percent from Bahman month last year to Bahman month this year.
The average price per square meter of housing in Tehran reached 27 million and 386 thousand tomans during Bahman month of 1399.
Additionally, the number of housing transactions in Bahman month this year reached 3,515 cases, while this figure was 13,264 cases in Bahman month last year.
As a result, the number of housing transactions in Tehran last month has fallen to one quarter of the Bahman month level last year.
The highest housing prices in Tehran belong to District 1, where each square meter costs 60 million tomans, and the lowest prices belong to District 18, where each square meter of housing is estimated at around 13 million tomans.
The dollar exchange rate has risen from 16,000 tomans at the beginning of the current year to above 25,000 tomans, but developments in the housing market show that the growth rate of home prices in Tehran has been even higher than the depreciation of the rial. Of course, considering the 48 percent inflation rate in Bahman this year compared to Bahman last year, this is not surprising.
The Central Bank’s account of housing prices in Tehran doubling over the past year comes as Iran’s Statistics Center claimed in its latest report that housing inflation in the country during Bahman month this year compared to Bahman month last year was only 28 percent.
The surge in housing prices comes as the Islamic Consultative Assembly on Tuesday, February 24, obligated the Tax Administration to determine how to collect taxes from vacant homes by the end of Dey month of 1400.
Previously, some representatives and the government had warned that imposing taxes on vacant homes could create a new wave of housing price increases in the country.
The price per square meter of housing in Tehran has risen from around 3.5 million tomans in Bahman month of 1392 to above 27 million tomans in Bahman this year; in other words, it has increased nearly eightfold over seven years.
Such a level of price growth has increased pressure on low-income segments of society, especially young people who have recently started families.
This comes as the Islamic Republic has consistently encouraged people to increase reproduction in recent years, and on Saturday, parliament representatives also approved a proposal to grant 70 million tomans in loans to families without housing for their third child born in the current and upcoming years. This amount is equivalent to 2.5 square meters of housing in Tehran.
Source: Radio Farda
