Life in Iran House Prices in Tehran Rise 74% in Past Year

House Prices in Tehran Rise 74% in Past Year

-

House prices in Tehran

Iran Focus

London, 1 Oct – In the past year, the average cost of buying a house in Tehran has jumped by a massive 74%, according to the Central Bank of Iran. In the past Iranian month (August 21-September 21) alone, residential unit prices have jumped by 9.4%.

The CBI reports that the one square meter of an average unit in Tehran is currently worth around 84,000,000 rials ($2,000, based on Iran’s artificial exchange rate, or $500, based on the global exchange). The latter figure is more relevant in this case, as sellers can’t get cheap dollars based on the government rate.

These numbers show that although prices have risen dramatically in Iranian rial, the value has not really appreciated in US dollars.

This incredible price increase coincided, unsurprisingly, with a large drop in sales. Only 10,300 units were sold in Tehran in the past year, while house sales dropped 14% in the past month alone. Overall, sales have declined by 33%, but prices have increased further, which is a very unusual situation.

Housing costs in Iran have always accounted for up to two-thirds of the average Iranian’s income and a house is a family’s most valuable asset, rising steadily in value for the past 60 years. However, the past 9 months has seen a dramatic turnabout, largely thanks to the six-fold drop in the value of the Iranian currency rial against harder currencies like the euro and the US dollar.

This means that most Iranians think of their costs in terms of US dollars rather than rial in order to get a more accurate value, considering that the exchange rate has dropped from 30,000 rials per dollar in February to 180,000 rials per dollar in September.

This significant drop also affects the price of construction material, i.e. bricks and cement, which experienced an unprecedented rise in cost in Spring 2018, and housing materials, i.e. tiles and taps, that are often imported from abroad.

These rising prices make it difficult for buyers to purchase a residential unit, with many media reports focusing on people who have saved for years to buy a house, only to find that their savings are now worth little. Many are looking to buy outside of Tehran and some are forced to rent a cheap room in the city to sleep in during the work week, only seeing their family at weekends.

House rental price is also up 14.6% since last September and 12.4% since August.

Latest news

Connex Sleepers, the Other Face of Marginalization in Iran

Most official statistics in Iran cannot be trusted, and each government institution has its own statistics. However, according to...

EU Must Adopt a Firm Policy Against Tehran’s Terror Attacks

Two years ago, on June 30, 2018, European law enforcement managed to foil a terror attack in Villepinte, suburb...

End of Tehran’s Joy Over the Lifting of UN Arms Embargo

Until October 18, Iranian authorities tirelessly touted lifting the UN arms embargo as a significant achievement. President Hassan Rouhani...

Iran: Nine Economic Protests in Two Days

The Iranian people held nine protests over economic concerns, with many demanding unpaid wages, on Monday and Sunday. Let’s...

Iran’s Government Arrests Youth in Connection With November 2019 Protests

On October 14, the East Azerbaijan police commander announced the arrest of 176 young men under the pretext of...

Over 50,000 Girls Go Hungry Every Day in Iran

Thousands of Iranian girls are going hungry every day, resulting in malnutrition that will have devastating long-term effects on...

Must read

Water Crisis to Hit 80% of Iranians by 2021

Iran Focus London, 29 Jan - Four in five...

Iran releases former police chief

AP: A government-owned newspaper says Tehran's former police chief...

You might also likeRELATED
Recommended to you