Central Bank: Housing Transactions Decreased in December

The number of residential apartment transactions in Tehran during December of this year decreased by 5.9% compared to December of last year. According to the Central Bank's report on the developments in Tehran's housing market, the number of residential apartment transactions in this month reached 11,800 units, showing a 0.5% decrease compared to the previous month, November. The decrease in housing transactions in the capital in December could indicate a continuation of stagnation in this sector for market participants. Despite the decline in the number of transactions in December compared to the same month last year and the previous month, the average price per square meter of residential space in Tehran experienced a growth of 7.7% compared to December of last year. Consequently, the average price per square meter of residential space sold in Tehran this month reached 4,430,000 tomans. Considering the inflation rate of approximately 7 to 8% in recent months, the real average price per square meter of residential space in Tehran has remained stable. The report indicates that, as in previous months, among the 22 municipal regions of Tehran, Region 5 was the most active, accounting for about 17% of all transactions in December. Following this region, Regions 4 and 2 ranked next in terms of the highest number of apartment transactions. According to the Central Bank's report, the most expensive area in Tehran in December was Region 1, where the average price per square meter of residential space exceeded 10 million tomans. The cheapest area was Region 17, with an average price of 2,210,000 tomans per square meter. The highest average price growth in December compared to the same month last year was observed in Region 16, where the average price per square meter of residential apartments increased by about 16%. The lowest price growth was in Region 10, which saw a 4.3% increase compared to the same month last year. The housing and construction sector is one of the most important economic sectors for revitalization, with a long production chain and numerous related industries in construction, prompting the government of Hassan Rouhani and the Central Bank to pay special attention to this sector to stimulate the economy and implement various programs to create momentum. Increasing the ceiling for housing loans, creating a housing fund for first-time buyers, and allowing all banks to provide housing loans are among these programs. However, despite these efforts, as the Central Bank's report indicates, the housing and construction sector remains in a relative recession.