TEHRAN – The average house price rose 3% in the city of Tehran in the last Iranian calendar month of Khordad (ended June 21), compared to the previous month, according to a report by the Central Bank of Iran ( CBI).

The price of housing in the capital also increased by 56.6% compared to the same month last year.

The CBI report estimated the average price of a square meter of a residential unit at 296 million rials (about $ 7,047) in the capital in the mentioned month.

As reported, the number of real estate transactions increased by 29.6% in the past month compared to the previous month.

The housing market in Tehran was Iran’s second most profitable among the country’s four major markets in the previous Iranian calendar year (ended March 20) with annual growth of 85%.

Information obtained from Kilid’s website (which is a major platform for the housing trade) indicated that the housing price index in Tehran rose 85% in the previous Iranian calendar year ( completed on March 20) compared to the previous year.

The largest monthly price increase of 12.5% ​​occurred during the Iranian calendar month of Mordad (July 22-August 21, 2020), while the largest monthly price decrease occurred in Azar (21 November-December 20, 2020) with a drop of 8.1%. .

Last month, the head of the Union of Iranian Real Estate Advisors said house prices in the country would have to drop by at least 25% so that people can afford to buy.

Mostafa Gholi Khosravi noted that the closure of real estate agencies due to the coronavirus pandemic has caused some problems in this market, calling for the reopening of agencies in accordance with health protocols.

The official also stressed the need to establish a market regulation headquarters for the housing sector to monitor the activities of dealers and real estate agencies in order to balance prices.

Housing prices in Iran have steadily increased over the past year due to various internal and external factors.

The coronavirus has been reported to be a major factor affecting housing prices in Iran, as the pandemic has raised concerns that its savings will be lost and more people have entered the housing market.

“People are looking to the housing market to protect their savings in the face of rising inflation. No one sees housing as a short-term consumer good. Even real consumers see buying a home as a long-term investment, ”said Mehdi Soltan-Mohammadi, a housing expert.

MOM