Iran Housing Price Record Shattered

Iran’s Central Bank announced on Tuesday, June 7, the release of a report indicating a 26 percent increase in housing prices in Tehran in Ordibehesht of this year compared to the same month last year.

Details of this report show that the average price per square meter of housing in Tehran last month reached a historic record of 36 million and 351 thousand tomans.

Housing prices also grew more than six percent compared to Farvardin.

It appears that the acceleration in housing price growth is related to the acceleration of exchange rates in Iran’s free market and the fall of the rial.

The dollar rate increased from 26 thousand tomans at the beginning of Farvardin to 30 thousand tomans by the end of Ordibehesht. The dollar rate in Iran’s free market is currently 32 thousand tomans.

The sharp decline in the value of the rial has caused capital to flow toward the housing market; so much so that Central Bank statistics show that more than 10 thousand residential units were traded in Tehran last month, which represents a 206 percent increase compared to Farvardin of this year.

Less than four thousand housing units were traded in Tehran in Ordibehesht last year.

Source: Radio Farda