The price of one square meter of residential units in Tehran reached 4.2 million tomans

The number of transactions for residential apartments in Tehran in the first four months of this year reached about 52,000 units, which represents an 11.4% increase compared to the same period last year. The Central Bank published a report on the housing market developments in Tehran for Tir (July) this year on Thursday. According to the results of this report, the number of transactions related to the buying and selling of residential apartments in Tir this year increased by 27.6% compared to Tir last year, reaching 15,000 transactions. The report also states that the average price of one square meter of traded residential units in Tehran in the first four months reached 4 million and 170 thousand tomans, which is a 3.1% increase compared to the average price of one square meter of residential units sold in the same period last year, which is lower than the inflation rate. The average price of buying and selling one square meter of residential units in Tir 95 (July 2016) reached 4 million and 230 thousand tomans, showing a 0.1% increase compared to Khordad (June) this year. This figure represents a 4.4% increase compared to the price of one square meter of residential units sold in Tehran in Tir last year. The importance of the housing market report lies in the fact that price developments and the number of transactions in the housing and construction sector of the capital are indicators for economic observers of the continuation of recession or the beginning of recovery in the overall economy of Iran. The Central Bank's report on the housing market developments in Tehran is based on raw statistics from the Iranian Real Estate Transactions Registration System. According to this report, the highest average price of one square meter of traded residential units was recorded at 8 million and 940 thousand tomans in district one of Tehran. The lowest price for one square meter of residential units this year was recorded at 2 million and 130 thousand tomans in district 18 of Tehran. The highest number of sale contracts among all transactions of buying and selling residential apartments in Tir was also recorded in district 5 of Tehran, accounting for 16% of total residential transactions, followed by districts 4, 2, and 8. Another section of this report addresses rental prices in Tir this year. Accordingly, the rental price index in Tehran experienced a 9.5% increase compared to the same month last year. The rental price index in all urban areas in Tir this year increased by 10.3% compared to Tir last year. The Central Bank's report indicated that the increase in the rental price index in Tehran and all urban areas of Iran is in line with the inflation rate, meaning that in reality, rental rates have not increased. The report also emphasized that the Central Bank expects that with the monetary policy approach to facilitate credit in the housing sector and the program to reduce bank interest rates, the housing market will continue to see an increase in the number of transactions in the coming months.