In Iran, inflation of 100 and 200 percent in the rental market is a fact that paves the way for the widespread expulsion of weak and average tenants, and in this situation, according to real estate consultants, tenants who cannot pay the added costs of their renting from saved money, borrowing or selling cars or gold, are easily expelled from the city to the suburban.
The forced relocation of tenants to poorer neighborhoods, which has been increased in the summer for several years, is now being repeated with greater intensity and magnitude. According to field observations, the issue of moving to poorer neighborhoods or streets has changed its nature, and the circle of this migration has been extended beyond and most people are moving to the suburban.
In the last three years, prices in the Iranian economy, regardless of the income situation and consumer purchasing power, have grown mainly based on the dollar and although it has multiplied several times in rials, in terms of dollar value, it is not much higher than three to four years ago.
However, due to the fact that incomes in Iran’s economy are in Rials, the majority of Iranian society has to pay the price of 700% inflation and experience unprecedented inflation, especially in the poor and middle classes.
The biggest cost burden of the Iranian economy for these deciles is the cost of providing housing, which sometimes consumes more than all the income of the main household job and forces them to accept second and third jobs.
The current state of the rental market is a full-blown picture of the pressure on the tenant class in the Iranian economy or will be imposed on them soon.
The fact that real estate consultants also point out is the strange and unprecedented brutality of the rental market, which is determined only based on the value of housing and the expected return of landlords from this large investment, and its figures do not match any tenant’s income and savings.
The wage approved by the labor law for a worker who heads a family of four is about 4.2 million tomans, and even in metropolitan areas, the average wage of workers and wage earners does not exceed 7 to 10 million tomans per month, but with the current conditions of the rental market, these amounts are not enough to pay the rent.
At current rental market prices, middle-class expenditures, especially in metropolitan areas, are inconsistent; As a result, real estate consultants believe that the eviction of weak and middle-class tenants from cities will be more rapid in the coming period and after the end of the coronavirus period when the mandatory extension of leases will be revoked.
The rental market is currently severely sluggish, and only first-time tenants and those who for any reason have not been able to forcibly renew their previous lease are looking to find rent; But in this sluggish market, the inflation is so great that few can rent a house in their former neighborhood or in areas that were previously commensurate with their income class.
The rental market has turned its back on the wage-earning sector, and most tenants are forced to accept the failure. Because the rental price is currently three to four times higher than last year and practically the purchasing power of none of the urban middle-class tenants is commensurate with this increase.
Tenants have fallen victim to the metropolitanization project and are being evicted from metropolitan areas, especially Tehran. This is a kind of genocide of the poor and middle-class tenants in the cities, which is taking place without the slightest intervention from the government and officials, observers say.