Housing Activist in Tehran: 40% Inflation Makes Living in the Capital Impossible

While a board member of the Tehran Builders Association stated that 40% inflation in housing this year makes living in Tehran impossible, an economic journalist in an interview with the Persian section of Voice of America cited capital flight from the housing market as a major reason for this issue. Hassan Mohtasham, a board member of the Tehran Builders Association, on Wednesday, May 10, discussed with the 'Eghtesad 24' website that the continued rise in housing prices makes it impossible for many people to live in Tehran. Roshanak Asteraki, an economic journalist residing in Cyprus, mentioned factors such as the high cost of land, extensive activities of the housing mafia, the government's inability to fulfill its promises in the housing sector, and consequently the growth in demand and capital flight from the housing market as reasons for the increase in inflation in this sector in Tehran. According to the Statistical Center of Iran, the average rent in Tehran in the last December compared to the year 1400 (2021) has increased by 40%. Thus, the rent per square meter in Tehran last year was estimated at 140,000 tomans. According to Roshanak Asteraki, the rising investment risk, persistent stagflation, sanctions, structural corruption, complex bureaucracy, and political threats have led to increased capital flight from the Iranian economy and housing market. This economic journalist stated in an interview with the Persian section of Voice of America that part of the capital that left the Iranian housing market has been transferred to neighboring countries like Turkey. Roshanak Asteraki believes that the government of Ebrahim Raisi has been unable to create attractiveness in the housing market and direct small investments to this sector, and the lack of investment in the housing market has led to simultaneous stagnation and inflation in this area. According to the Tejarat News website, housing prices in Tehran have increased by about 2500% over the past 12 years. Some experts also consider the lack of a law for housing price regulation as one of the reasons for the rapid inflation in this regard. Majid Goudarzi, a housing expert, described the housing sector as 'completely abandoned' in an interview with the 'Entekhab' website, stating: 'In Iran, we have pricing and laws for snacks, but housing can reach one billion tomans per square meter without any regulation, and there are no limits to house pricing.' Meanwhile, the government of Ebrahim Raisi has refrained from publishing credible statistics on issues such as inflation, employment, production, costs, and housing with the aim of controlling inflation. Abbas Abdi, a social researcher and journalist, wrote on Wednesday, May 10, in the Etemad newspaper: 'The respected government should not think that the way to control inflation is by eliminating statistical reports. Inflation has a reality that shows itself in the store.' When statistics speak; the heavy shadow of hunger in Iran. The average loan for employees of some banks in Iran reached 847 million tomans. Increasing criticism of the government for not publishing statistics; controlling inflation with 'statistical imprisonment.' The housing recession in Iran has lasted for 8 years; media reports: an increase in citizens' preference for 'middle-aged houses.' Expanding the scope of 'taxation' for citizens; from buying and selling property and cars to gold and cryptocurrencies.