Average Price of Residential Construction in Tehran Exceeds 8 Million Tomans per Square Meter

The average price of one square meter of residential construction in Tehran in Shahrivar (September) 1397 (2018) reached 8 million and 100 thousand tomans, marking a 74% increase compared to the same month last year. According to a report by the Central Bank on the developments in Tehran's housing market, the average price per square meter in this month increased by 9.4% compared to Mordad (August) of this year. While the price of residential construction in Tehran has risen, the number of apartment transactions in Shahrivar 1397 decreased by 33.5% compared to the same month last year, totaling 10,300 transactions. The number of apartment transactions in the reported month also saw a 13.9% decrease compared to the previous month, Mordad 1397. The housing market had entered a recession phase due to a freeze in transactions in previous years, but hopes for a revival emerged last winter with an increase in transactions. However, property owners and developers prevented a revival in the housing market by raising prices. This spring, the surge in various currencies in the free market, the rising costs of construction materials and iron, and interruptions in the supply of these items led to an unprecedented increase in residential unit prices, resulting in a decrease in transaction numbers. According to this report, price movements and transaction numbers are moving in opposite directions. The average price per square meter of residential construction in Tehran in the first half of this year reached 6 million and 747 thousand tomans, which is a 50.5% increase compared to the first half of last year. Additionally, the number of transactions in the first half of this year amounted to over 74,890, which is a 12% decrease compared to the number of residential unit transactions in the first half of last year. The report indicates that the most expensive area among the 22 municipal regions of Tehran in Shahrivar this year was Region 1, where the average price per square meter reached 17 million and 600 thousand tomans, marking a 75.3% increase compared to Shahrivar last year. The lowest price was found in residential units in Region 18, which saw an average price of 3 million and 400 thousand tomans, reflecting a 55% increase compared to the same month last year. Region 5 remains the most attractive area in Tehran, accounting for 15.9% of total transactions in the municipal region. The report also addresses the rental price index in Tehran for Shahrivar this year, which increased by 14.6% compared to the same month last year. The rental price index across all urban areas in Iran experienced a 12.4% increase compared to Shahrivar last year.