The Price of Residential Buildings in Tehran Reaches 4 Million Tomans per Square Meter

The average selling price of each square meter of residential space in Tehran during the autumn season exceeded 4 million tomans. According to a report from the Statistical Center of Iran on housing prices and rents in Tehran in autumn 1393 (2014), the average price of each square meter of land or old residential buildings during this period reached 4 million 410 thousand tomans. The average monthly rent, plus a 3% deposit for renting one square meter of residential space in Tehran, exceeded 1 million 90 thousand tomans. Apartments sold for an average of 4.4 million tomans per square meter. The report indicates that the average selling price of each square meter of residential space in Tehran during this period reached 4 million 4 thousand 700 tomans, which represents an increase of about 6% (5.9%) compared to the average price per square meter in the summer, and a rise of over 6% (6.2%) compared to the prices of the previous autumn. The number of residential property sales transactions in Tehran during this period, conducted through real estate agencies, decreased by 13.3% compared to the previous season, indicating a sluggish market compared to summer. However, the number of real estate transactions in autumn 1393 increased by 38.4% compared to autumn 1392, which is good news for market participants, signaling a relative return to prosperity in this market over the year from last autumn to this autumn. Among the 22 municipal regions of Tehran, the highest average selling price for one square meter of residential space traded this autumn was about 8 million 330 thousand tomans in region one, while the lowest was around 1 million 995 thousand tomans in region 18. The most active area in Tehran this autumn was region 5, accounting for 12% of total residential sales transactions in autumn 1393, while the least active area was region 22, with less than 1% (0.9%) of transactions. The average selling price of each square meter of land or old residential buildings traded in Tehran's real estate agencies exceeded 4 million 410 thousand tomans, reflecting an increase of about 5% (4.9%) compared to the summer and over 1% (1.1%) compared to autumn 1392. The most expensive land or old building sold this autumn was in region three, with an average selling price of 8 million 959 thousand tomans per square meter. The lowest average selling price for each square meter of land or old buildings this autumn was in region 20, reaching 1 million 432 thousand tomans. Another section of the report from the Statistical Center of Iran addresses changes in rental prices in Tehran this autumn. According to this report, the average monthly rent, plus a 3% deposit for renting one square meter of residential space in Tehran, exceeded 19 thousand tomans, representing a 3.8% increase compared to the summer and a 10.2% increase compared to the same season last year. The highest average monthly rent, plus a 3% deposit for one square meter of residential space in Tehran during the reported period, was in region one, recorded at 31 thousand 850 tomans, leading the prices among Tehran's municipal regions. The lowest average monthly rent, plus a 3% deposit for one square meter of residential space sold in Tehran this autumn, was recorded at 9 thousand 950 tomans in region 19. This autumn, the record for the highest rent, plus a 3% deposit for one square meter of residential space registered in the real estate transaction system, was 92 thousand 590 tomans for a building in region three. Although prices in Tehran's housing and construction market generally increased compared to the previous season and the same season last year, these price increases were significantly lower than the average inflation rate, which fluctuated around 16%. The housing and construction sector in Iran has been in recession for several years, and the eleventh government has made efforts to revive this sector, which can be a driving force for other parts of Iran's economy. The liquidity freeze in the construction and housing sector and the prolonged recession in this area have kept many related industries and sectors in a state of suspension. However, as Mohammad Mahdi Mafi, the secretary of the Tehran Builders Association, stated in an interview with Mehr News Agency, it is likely that "the housing market will emerge from the construction recession in the coming months," and he believes that "housing production will increase next year."