42% Increase in House Rent in Farvardin; Tenants in Distress

Iranian media have reported the continuation of the price increase crisis in the rental market, announcing a 42% increase in rent compared to Farvardin of the previous year. The newspaper 'Donya-e-Eqtesad' stated that monthly inflation is still rising, with house rents increasing by 1.7% in Farvardin compared to Esfand of the previous year. Donya-e-Eqtesad has ruled out any improvement in the rental market, noting that 'in all Farvardins in recent years, monthly rental inflation has always experienced a rate drop.' The newspaper indicated that the pace of point-to-point and annual rent growth has historically increased over the past two to three years and even at the beginning of this year. The report's author pointed out that this trend is due to the 'surging level of general inflation' and 'housing inflation.' It emphasized that the 'formula proposed by parliament representatives for determining permissible rent growth for the year,' which awaits approval from the Guardian Council, does not align with 'the current state of this market.' According to the proposed formula, landlords must increase the new year's rent based on 50 to 100% of general inflation, and anything beyond that is prohibited. Based on this proposal, Donya-e-Eqtesad noted that in the current situation where 'the rent growth rate is 1.35 times the general inflation rate,' using general inflation as a benchmark for determining rent inflation raises doubts about its acceptance by the market. News analysis in this area shows that government officials are claiming improvements in rental conditions without regard for current market realities. In this context, Ehsan Khandozi, the economic spokesperson for the Islamic Republic government, claimed on Farvardin 29 that the government's performance in the rental sector has been 'optimal and impactful,' and that it has succeeded in 'organizing and managing' this market compared to previous years. These claims were questioned at the time by Donya-e-Eqtesad, which reported that investigations show that 'the housing rental market in the thirteenth government has recorded the highest rent growth in the history of official rental data.' On Farvardin 29, Donya-e-Eqtesad stated that official figures related to housing rent inflation in Tehran show that from 1400 to the end of 1402, 'rent increased annually by 45%, 44%, and 52%, respectively.' The newspaper emphasized that from 1370 to 1400, 'the highest annual rent growth was in 75, at 41.5%.' Accordingly, the newspaper stated that 'the most turbulent period of renting' has been during the years of the thirteenth government, and an assessment based on 'official data' indicates that this government has not succeeded in 'regulating rents.' The critical conditions of housing and rent have also been reflected in official reports from government centers, as the Research Center of the Parliament noted in a report in Mordad 1402 that the increase in the ejected income brackets from the housing market has left the first to third income brackets absolutely unable to secure housing for their needs, while the third to fifth and even parts of the sixth income bracket are 'relatively' unable to secure necessary housing. The increase in rents in Iran has led to a new form of 'bad housing,' with reports indicating issues such as multiple families living in one house, rooftop sleeping, bus sleeping, tent living, and various other problems such as the expansion of slum areas and reverse migration.