Stability of Prices in the Capital's Housing Market: 9 Million and 970 Thousand Tomans per Square Meter

The Central Bank of Iran reported that the average price of residential construction per square meter in Tehran reached 9 million and 970 thousand tomans in February of this year, reflecting an increase of over 85% compared to February of last year. According to this report, the average price per square meter in the capital experienced a slight increase of 1.7% compared to January of this year. The rate of average price growth per square meter in Tehran over the past months compared to the same months last year was over 90%, but in February of this year, this increase returned to less than 90%. An examination of the number of transactions in February shows that a total of 9,300 apartments were sold, indicating a decrease of over 49% compared to February of last year, but this number of transactions saw a growth of 39% compared to January of this year. The increase in transactions compared to January may indicate a circulation of investments in Tehran's housing market, which has reached relative stability in terms of prices in recent months. The Central Bank's report specifies that in February, apartments built within the last five years remained the most sought-after, accounting for over 44% of transactions. Additionally, among the 22 districts of Tehran, District 5 was the most active, accounting for nearly 14% of all transactions. The most expensive area in Tehran was District 1, where the average price per square meter reached 21 million and 80 thousand tomans, while the cheapest area was District 18, with an average price of 4 million and 530 thousand tomans per square meter. The most popular price range for apartments in February was between 300 million tomans and 450 million tomans. The report also noted developments in rental prices, with the rental index in Tehran experiencing a 20.4% increase compared to February of last year, while the rental index for all urban areas in Iran rose by 17.5%. Overall, comparisons of this report's statistics with previous reports indicate that the housing and construction market in the capital has experienced greater relative stability compared to previous months, with no signs of the severe price increases seen in the past months. Mostafa Ghuli Khosravi, head of the Tehran Real Estate Agents Union, recently predicted that due to the low purchasing power of buyers, there will be no significant price surge in the coming solar year. He noted that after the revolution, there were price surges in 1989, 2007, 2012, and 2018, driven by four main factors: the stock market, gold, energy carriers, and currency. Currently, with the reduced purchasing power of buyers, a price surge is not expected. However, with rising inflation rates, an increase in housing prices can be anticipated, albeit lower than the inflation rate. With rising housing prices, the number of transactions has decreased, making the market somewhat stagnant with astronomical prices.