The state-run news agency ISNA reported that this is a historic stagnation in Iran’s real-estate market and shows that most of the buyers who are searching for an apartment are searching for prices under the official price of the market, while most of the people are not able to pay such high prices anymore.
The real-estate transactions in Tehran were only 2,787 items in the last month.
The main reasons for the drop are deep economic recession and high inflation, which have affected the middle class, especially people on fixed incomes and salaries. They simply spend their money on bare necessities and are priced out of the market for buying an apartment. Some can barely afford to raise the money to pay their rent, especially given that in Iran, owners demand extra cash for signing a rental agreement.
Another reason for the stagnation is that real-estate consultants said that the construction business owners had stopped the construction of half-built apartments because of low prices, and to be able to sell the apartments when the prices have reached what they expect. And they removed the projects which did not start from the selling lists. Some experts have said that the increase in price of cement and raw material has affected the decision of the construction business owners.
The reality is that the construction of buildings in the capital is double more than the requests by the people which is showing that the people are not able to buy apartments.
Owners of homes and apartments think of asking prices for their properties in terms of dollars, not the local currency. Therefore, the prices homeowners demand easily double and triple. In fact, calculated in dollars, real-estate prices have not risen at all. One square meter in Tehran goes for an average price of 126,670,000 rials or $1,200. The cost is $110 per square foot.
But people with fixed incomes are not earning dollars to be able to afford the higher prices. In short, a combination of high prices in local currency and lack of jobs and higher incomes have pushed sales down.