Housing Inflation is '30 Percent' Higher than General Inflation

The release of official housing statistics in Iran after 8 months has revealed realities such as the high inflation of land in this sector, which is higher than the general inflation in society. According to a report by Mehr News Agency, citing information from the government institution 'Statistical Center of Iran' regarding housing prices in Tehran, housing inflation is '30 percent' higher than 'general inflation.' The main reason for this gap is attributed to the 'high price of land.' Based on official statistics, the 'average price' of each square meter of residential units in Tehran, the capital of Iran, has increased by '79 percent' compared to the same period last year. Mehr reports that the '30 percent' difference between the inflation of other goods and housing carries an important message: 'the growth rate of housing prices does not follow the rate of general inflation,' a message that mid-term studies also confirm. The increase in housing prices has led people to move to the outskirts of cities, according to reports in Iran. In this regard, the Research Center of the Islamic Consultative Assembly announced last week that about '6 million people' live in 'informal settlements,' with the area and number of households in these areas increasing. According to a report from the 'Tejarat News' website published on November 4, this population of 6 million lives in places 'deprived of basic living facilities such as quality healthcare and education.' The economic inefficiency of the Islamic Republic government in economic management, high inflation, and low income levels in many sectors of society have made 'homeownership' an 'unattainable dream' for many social classes. Morteza Afghah, an economist, stated on October 6 to the 'Didban Iran' website that new studies show 'six income deciles' in Iran are 'experiencing poverty,' and more than half of Iran's population is considered 'poor.' He also mentioned that three deciles of these six are in 'absolute poverty.' Media readings of the report released by the Statistical Center indicate that prices have surged; the expansion of slum housing; the Research Center of the Parliament: 6 million people have 'informal housing'; a crisis of trust in official statistics in Iran; a government official: the statistical gap between the Central Bank and the Statistical Center 'questions the legitimacy of the data'; the Statistical Center of Iran: the point-to-point inflation of residential apartments in Tehran reached over 75 percent this September.