Iranians floored by sky-high housing costs
A proposal by some Iranian parliament members designed to help renters could leave them locked out instead.
Home prices in Tehran more than doubled in the quarter that ended June 21 compared with a year earlier, after a prolonged period of relative price stability in the properties market.
Extreme fluctuations in the markets for alternative assets like gold coins and currency also caused residential property prices to skyrocket, as investors looked to hedge their capital against value loss. This was largely fueled by Washington’s unilateral exit from the Iran nuclear deal in May 2018.
According to a report published June 25 by Iran’s Islamic Parliament Research Center (IPRC), total demand for housing units in Iran is expected to stand at around 800,000 each year. Meanwhile, the average supply of homes has dropped to 350,000 units per year.
According to the report, the average price of 1 square meter (roughly 11 square feet) of home space across the country is calculated at 110 million rials ($2,610). Consequently, would-be home buyers would pay about 8.2 billion rials ($194,750) for a 75-square-meter (807-square-feet) residential unit. As the average Iranian’s minimum monthly salary is about 15 million rials ($356), it could take many decades to pay off a mortgage. Therefore, demand for apartment rentals has surged in recent years.
