Housing price increases 2.9% in Tehran city

TEHRAN- Average housing price rose 2.9 percent in the capital Tehran during the ninth Iranian calendar month Azar (ended on December 21, 2022), compared to the previous month, according to a report by the Central Bank of Iran (CBI).

Based on the CBI data, the average price for one square meter of a residential unit in Tehran stood at 480.7 million rials (about $1,265) during the mentioned month.

As reported, the number of real estate deals stood at about 10,200 in the capital city in the ninth month of this year, up 27.2 percent and 4.7 percent compared to the previous month and the same month in the past year, respectively.

As previously reported by the Central Bank of Iran, the average housing price rose 16 percent in the capital Tehran during the last month of the past Iranian calendar year 1400 (ended on March 20, 2022), compared to the same month in the preceding year.

Based on the CBI data, the average price for one square meter of a residential unit in Tehran stood at 351.2 million rials (about $924) during the last month of the past year, up 6.2 from the previous month, and 16 percent from the same month of the preceding year.

Housing prices in Iran have been constantly rising over the past three years due to various internal and external factors.

Although, in early May 2022, the chairman of Real Estate Agencies Union said, “This [Iranian] year is the year of lower housing prices; this condition will continue in the country for the next two years, and we will see a continuous decrease in housing prices”.

Mostafa Qoli Khosravi referred to a report released by the Central Bank of Iran in terms of housing price in the first Iranian calendar month Farvardin (ended on April 20, 2022), and said: "The government is trying to compensate the housing shortage in the country with the National Housing Movement plan, and this plan is being prepared and implemented in several urban and rural areas”.

He said that there is currently shortage of about 720,000 housing units in the country, adding: "Every year, dilapidated apartments are added to this number, therefore, the current government intends to compensate for the housing deficit by recognizing this shortage and implementation of National Housing Movement.”

The market will react positively to the increase in supply, and the completion of the government plans including Mehr Housing and National Housing will control the uncontrolled growth of housing prices, he further predicted.

After National Housing Action Plan (started in 2018), National Housing Movement is the government’s second major program to provide affordable housing units for the low-income classes.

The operation for the construction of 209,212 residential units of the National Housing Movement began in early February 2022.

National Housing Movement to construct four million housing units in four years is one of the major plans of the current government in the housing sector.

According to the plan, out of these four million residential units, 3.2 million units will be constructed in cities and 800,000 units in villages, some of these units are currently being constructed after providing lands and preparing the necessary conditions.