Shocking Details on Housing Prices in Tehran| Price of a 50-Square-Meter House Exceeds 20 Years of a Worker’s Salary
As the housing crisis continues, reports indicate a 500 percent price increase in some areas surrounding Tehran.
On Sunday, the 27th of Mordad, the ILNA news agency reported on “shocking” increases in housing prices in major cities and the capital, noting that over the past year, housing prices in some areas surrounding Tehran have increased by up to 500 percent.
The news agency also cited Ehsan Soltani, an economic analyst, who wrote that based on calculations, the average housing price in Tehran in June of this year reached 1,060 dollars per square meter. If we consider the minimum worker’s wage at 2 million tomans, should workers want to purchase just a 50-square-meter house, they would need to save their entire salary for 250 months—that is, 20 years and 9 months!
Previously, the first deputy head of the Tehran Province Real Estate Association had also reported on stagnation and declining purchasing power among housing seekers in Tehran, saying that in the second half of the year, stagnation in the housing market would deepen, such that the market has not experienced such stagnation in the past quarter century.
With the continuation of economic crisis in Iran, the depreciation of the national currency, and severe stagnation in production and service sectors, some capital has flowed into the housing sales and purchase sector, leading to price increases. Furthermore, the rising inflation rate in Iran’s economy has caused housing to become increasingly expensive.
Source: Voice of America
