Fruitless Promises of the Government; Rising 'Fever' of Rental Costs

Despite the promises of officials in the Islamic Republic government, the latest official statistics indicate an increase in the speed of rental price growth in August compared to July of this year. The statistics regarding changes in the housing rental price index in the country, as announced by the Statistical Center of Iran, show that the 'housing rental' index has increased by an average of '38 percent' in the first five months of this year compared to the first five months of last year. According to an analysis by the Tehran-based newspaper 'Donya-e-Eqtesad', the current growth rate of rental costs is more than twice the 'historical inflation in this national market' and also 1.9 times the 'government-approved ceiling'. Acquiring housing, especially paying rent, is one of the main concerns of many Iranian households, especially since official reports from government agencies indicate that 'half of Iran' is involved in 'housing poverty' and that there is a 'lack of access' for low-income individuals to 'adequate housing'. According to the newspaper Donya-e-Eqtesad in July, the rental market witnessed a 'slight decrease' in the speed of rental cost growth in the country, but in August, the changes in the housing rental price index experienced a 'one percentage point increase'. Based on this, the monthly rental inflation according to the housing rental price index in the country decreased slightly from 2.6 percent in June to 2.4 percent in July, but in August, this figure increased to '3.3 percent', marking a one percentage point rise. This 'inflationary ascent' occurred not only in monthly inflation but also in point-to-point inflation. The point-to-point rental inflation also surpassed '38 percent' in August based on changes in the rental price index in the country, leading to a renewed change in the path or 'trend of rental inflation in the housing market of the country'. Ebrahim Raisi, the President of the Islamic Republic, claimed during a press conference on September 7 about the government's actions and achievements in the housing sector: 'Allocating land and facilities was among the government's actions in this area, and recently more than 100,000 housing units were delivered to applicants.' These statements were made while the head of the executive branch of the Islamic Republic and figures close to him have repeatedly promised 'to build one million housing units per year' since June 2021 during the presidential election campaign and after the formation of his cabinet, but no report on the final realization of this promise has been published so far. Given that, according to Alireza Mohli, the representative of the Minister of Roads and Urban Development in the 'Regulation and Control of the Real Estate Market' working group, there are eight million tenant households in Iran, according to Davood Beigi-Najd, the vice president of the Real Estate Consultants Union in some areas of Tehran metropolis, 'some' housing experts have set a dollar price for housing.