23% Increase in Housing Prices in Tehran Since Beginning of Current Year
The Housing Planning and Economics Office of the Ministry of Roads and Urban Development says housing prices in Tehran during the month of Khordad increased by 23% compared to the beginning of the current year and by 42% compared to Khordad of last year.
The average housing price in Khordad exceeded 19 million tomans per square meter. This figure was 17 million tomans in Ordibehesht of this year and 15.5 million tomans in Farvardin. Housing prices in Iran have quadrupled since the beginning of 1397.
The skyrocketing housing prices have dashed the hopes of renters to buy homes, and rental prices have also risen sharply.
It is not exactly clear how many Iranians are currently renters, but recently Mahmoud Mahmoodzadeh, Deputy Minister of Housing and Building at the Ministry of Roads and Urban Development, announced that based on 1395 statistics, in Tehran, 43.6% of individuals are tenants.
According to Mahmoodzadeh, in 7 provinces including Tehran, Kohgiluyeh and Boyer-Ahmad, Kermanshah, Qom, and Lorestan, the renter rate exceeds 40%, and in 6 provinces including Yazd, Mazandaran, and Golestan, the renter rate is less than 30%, and in the rest of the country’s provinces, the renter statistics are between 30 to 40%.
This price increase comes as the Majlis Research Center recently reported a 34% decline in people’s purchasing power over the past 10 years.
This is while on Tuesday, the head of Iran’s Statistical Center claimed that last year people’s income and expenses were better than in 1397 and the growth rate of incomes exceeded the growth of household expenses.
His remarks come at a time when in recent days many reports have been published about “doubling of roof rental prices for sleeping,” “the prevalence of renting one housing unit by two families,” and similar cases.
Shahrvand newspaper also reported on Wednesday about “young couples selling gold and marriage loans, as well as cars to pay for housing rental.”
A Shahrvand correspondent visited four neighborhoods—Railroad, Revolution, Baharestan, and Navab—in Tehran to investigate the extent of price increases in the housing rental market. The result is that rental prices have increased between 40 to 100% compared to 1398.
One tenant told this newspaper, “Last year at this time, with 90 million tomans one could buy a 45-square-meter house in the Railroad neighborhood, now with this money one cannot even mortgage that same house.”
Source: Radio Farda
