These days, the cost of renting a house in Iran has become so high that some people are considering renting basements for living.
According to advertisements on real estate platforms, a 60-square-meter basement in the city of Shiraz is being offered for a monthly rent of 130 million rials upfront (approximately $2,347).
In Mashhad, a 50-square-meter basement is advertised for 500 million rials upfront (approximately $903) and a monthly rent of 50 million Iranian rials (approximately $90).
In Tehran’s Tehranpars district, a 180-square-meter basement is listed for a monthly rent of 300 million rials (approximately $542) with an upfront payment of 2 billion rials (approximately $3,610).
It is worth noting that the approved minimum wage in 2023 is approximately 90 million rials (approximately $163). Iran has an inflation rate of around 50 percent.
The state-run Shargh newspaper reported on February 10 that the construction of “micro-apartments” has begun to address the housing crisis. It mentioned a planned city in Tehran province covering one million square meters, with the capacity to build 20,000 affordable housing units. Preliminary infrastructure work has already started for the construction of affordable housing in this city.
In recent days, media reports have highlighted the extreme rental prices, such as a 10-square-meter single room in Tehran’s Amin Hozoor neighborhood being offered for a monthly rent of 100 million rials (approximately $180) and an upfront payment of 30 million rials (approximately $55).
Media also reported in November 2023 that a record-breaking rent had been set in Tehran, the highest in the last 30 years.
Despite this, there seems to be a preference for 10-square-meter rooms. However, Donyaye Eghtesad wrote on November 7, 2023, that statistics indicate a record in residence registrations for homes up to 40 square meters in the capital during the current year.
Iran’s Statistical Center indicates that the average price per square meter of an apartment has risen from 62 million rials (approximately $1,000) in the spring of 2018 to over 808 million rials at present (approximately $1,462) (considering 50 percent inflation).
In August 2023, the Research Center of the Iranian government reported on the increase in eviction notices from the housing market, stating that households with one to three eviction notices and even some in the “relatively” sixth category are unable to secure the housing they need for residence.
The Tasnim news agency, affiliated with the Islamic Revolutionary Guard Corps (IRGC) in Iran, reported the ineffectiveness of a nearly 10 billion rials housing loan for citizens becoming homeowners.
According to the agency, the average housing price has exceeded 800 million rials, and with a 9.6 billion rials loan (approximately $17,329), considering loan expenses, one can only buy an eight-and-a-half-square-meter house.
Iranian media also reports the continuation of a recession in the housing market and the concerns of construction companies about the ongoing recession. They have announced that the buying and selling statistics in Tehran alone amount to only 3,000 cases in a month.
The regime’s Donyaye Eghtesad daily wrote on January 7 in this regard that transaction volume has dropped by over 70% compared to the first half of the 2010s decade, before the onset of price hikes.
During his presidential election campaign, Ebrahim Raisi promised to build one million homes annually, a commitment he has reiterated in recent years.
In recent months, the regime’s officials have claimed to be in the process of constructing close to two million housing units. However, experts reject these claims based on the statistics of issued permits for housing construction.
In the latest decision by the Tehran municipality, it was announced that reserve lands in some areas will be allocated to Chinese companies for construction.
