2 Billion Toman Loan with 38 Million Monthly Installments for 20 Square Meters of Housing

Media reports indicate that one of the banks is attempting to double the housing loan to 2 billion tomans; meanwhile, Iraj Rahbar, the head of the Tehran Builders Association, has announced that the average price of an apartment in Tehran is over 90 million tomans per square meter. Investigations show that if the housing loan is increased to 2 billion tomans, considering current expenses, this loan would only allow the purchase of 20 square meters of a residential unit in Tehran. Additionally, media reports have stated that if the Central Bank agrees to this increase, the monthly installments for this loan would be approximately 38.6 million tomans, and the total interest after repayment would exceed 3.5 billion tomans. The 38.6 million tomans monthly installment for the housing loan comes at a time when the average salary of government employees is less than 20 million tomans, and the maximum income of a married worker with all benefits is also less than 12 million tomans. On the other hand, with the rising housing prices in Iran, the head of the Housing and Building Department announced in December of this year that the cost of housing for urban households has increased to 50% of the household budget. Masoud Bayat-Manesh stated that given the importance of the housing sector in the country's economy, the current recession in this market is due to various factors, the most important of which are the lack of financial support and decreased purchasing power of households. Experts predict that the continued rise in the dollar price in the market and the persistence of inflationary conditions in the country will soon push the average housing price in Tehran above 100 million tomans. Housing loans cover the cost of 'eight square meters of housing in Tehran.' There are also preferential loans for members of parliament; 500 million tomans at a 4% interest rate for housing deposits. The Minister of Economy in the government of Mohsen Medhi defended the 91 trillion toman loan from banks to employees. The housing deposit loan has increased, and landlords have raised rents by 50%. The expectation of a 500-year wait for purchasing housing with current wages in Iran is also noted.