The Vice President of the Real Estate Union states that the average rent prices in Tehran have increased by over 50%, and due to rising prices in the housing market, tenants are no longer considering buying homes. Davood Beiginejad mentioned on Sunday, August 19, that there is currently stagflation in the rental market, as well as in buying and selling properties. He stated, 'In general, there are no buyers in the housing market.' Previously, the Central Bank of Iran reported a 47% and 51.6% increase in rental prices in Tehran and urban areas of the province for the month of Khordad compared to last year. Archive statistics from the Central Bank indicate that while nearly 15,000 homes were sold in Tehran in Khordad 1397 (June 2018) before the imposition of U.S. sanctions against Iran, this number has fallen to below 4,000 units this year. The situation of 'bad housing' in Iran has intensified. Since the rise of Ebrahim Raisi's government, the average price per square meter of housing in Tehran has surged from below 32 million tomans to nearly 85 million tomans. The thirteenth government initially promised to build one million housing units annually; however, Mohammadreza Rezayikoochi, head of the Parliament's Civil Commission, announced on April 14 that the progress of the 'National Housing Movement' plan has stalled at 25%, with only a 'very small' portion of government housing projects delivered. He stated that what has been delivered is related to the 'National Housing Action' project of the previous government. The Vice President of the Real Estate Union also mentioned that the approved ceiling for a 25% increase in rent this year indicates that there is currently no suitable pricing model. Last year, the government had prohibited a rental increase of more than 25% in Tehran, but rents practically doubled. Beiginejad stated that, as in previous years, no steps are being taken in the housing market to help tenants become homeowners, as pricing is beyond the financial capacity of tenants; in other words, the purchasing power of the general tenants has decreased, leading to a stagnation in the housing market due to the lack of buyers. He further noted that tenants, due to reduced financial capacity, are moving from their current areas to lower-income neighborhoods.
50% Increase in Housing Rent in Tehran
Housing rents in Tehran have surged by over 50%, pushing tenants away from homeownership as prices soar. The government has failed to deliver on housing promises, leading to a significant decline in property transactions. This situation exacerbates the housing crisis in Iran.
👥 Key Players
📰 What Happened
Housing rents in Tehran have surged by over 50%, leading to a stagnation in the housing market as tenants are unable to afford home purchases. The government's failure to deliver on housing promises has exacerbated the crisis.
- Average rent prices in Tehran increased by over 50% compared to last year.
- The number of homes sold in Tehran has drastically decreased from nearly 15,000 in 2018 to below 4,000 this year.
💡 Why It Matters
📚 Background
Iran has been facing economic difficulties exacerbated by U.S. sanctions, leading to inflation and a housing crisis. The government's failure to deliver on housing promises has intensified these issues.
🏷️ Entities Mentioned
Translated from the original and edited for English readers. View original source →
Translation confidence: 85%