According to the latest report by the Central Bank of Iran, the average housing price in Tehran has reached over 830 million rials (approximately $1,353). The regime’s 90 Eghtesadi website reported a 60% decline in transactions in this sector in 2023.
Iranian media reports indicate that the housing price in Tehran, based on the latest official data released on March 18 by the Statistical Center of Iran, has reached 833.12 million rials per square meter.
Reports suggest that the average price of houses in Tehran has increased to 833.12 million rials after almost a year, precisely an increase of 168.72 million rials (approximately $275) per square meter.
This decline in transactions, according to some experts, indicates the continuation of the upward trend in prices in the market, which could lead to further declines in real estate transactions.
According to reports, based on the Central Bank of Iran’s data, the 11-month transactions (from April 2023 to March 2024) have been the lowest since 2016 and even before that.
Furthermore, a comparison of the statistics of 2023 with the real estate transactions in 2017 shows a 75% reduction in this area.
From the perspective of stakeholders in this field, this decline in transactions is likely to continue. Kianoush Goodarzi, the head of the Tehran Real Estate Consultants Union, stated that the real estate sector is influenced by various factors such as government fiscal policies, inflation, exchange rates, and more. He emphasized that what happens in the new year largely depends on the behaviors and policies of the government.
Goodarzi told “Hamshahri” newspaper that with the increase in the price of each dollar from 500,000 rials to 600,000 rials (the current price is around 61,350), sellers who were looking for buyers and offering discounts withdrew from selling and raised their offered prices by 20% to see what would happen in 2024.
Hossein Rostami, the head of the Mashhad Real Estate Consultants Union, also stated on March 27, “The government and the private sector must reduce the gap between supply and demand so that a change may occur in the housing market, and recession does not dominate the housing market this year.”
Reviewing the developments in the Iranian real estate market indicates that the reduction in people’s purchasing power is the most important factor in the inability of applicants to obtain housing.
Last summer, the Research Center of the Majlis (Parliament) wrote in a report that the lower to middle-income groups, particularly those in deciles one to three, are “absolutely” unable to provide the housing they need for residence.
During the election campaign and after taking office as president, Ebrahim Raisi promised to build one million housing units per year. But more than two years into his government’s term, he has yet to achieve any progress in this area.
