The housing price in the capital city also experienced a 56.6-percent rise as compared to the same month in the past year.

The CBI report put the average price for one square meter of a residential unit at 296 million rials (about $7,047) in the capital city in the mentioned month.

As reported, the number of real estate deals increased 29.6 percent in the past month from its preceding month.

The housing market in Tehran was the second-highest returning market in Iran among the country’s four major markets in the previous Iranian calendar year (ended on March 20) with 85 percent annual growth.

The information obtained from Kilid website (which is a major platform for housing trades) indicated that the housing price index in Tehran grew by 85 percent in the previous Iranian calendar year (ended on March 20) compared to its preceding year.

The highest monthly price increase of 12.5 percent occurred in the Iranian calendar month of Mordad (July 22-August 21, 2020), while the biggest monthly price decrease occurred in Azar (November 21-December 20, 2020) with a decline of 8.1 percent.

Last month, the head of Iran’s Property Advisers Union said housing prices in the country should decrease at least 25 percent in order for people to be able to afford to purchase.

Mostafa Gholi Khosravi noted that the closure of real estate agencies due to the coronavirus pandemic has caused some problems in this market, calling for the re-opening of the agencies in compliance with health protocols.

The official also stressed the need for establishing a market regulation headquarters for the housing sector to monitor the activities of dealers and real estate agencies in order to balance the prices.

Housing prices in Iran have been constantly rising over the past year due to various internal and external factors.

Coronavirus has been reported to be a major factor affecting the housing prices in Iran as the pandemic has stoked concerns about losing one’s savings and more people entered the housing market.

“People are turning to the housing market in order to protect their savings in the face of rising inflation. No one sees housing as a short-term consumer commodity. Even real consumers view purchasing a home as a long-term investment,” Mehdi Soltan-Mohammadi, a housing expert, said.

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Various projects are underway in the capital, which requires some 120 trillion rials (nearly $3 trillion) to be completed, besides the subway, he stated, ISNA reported on Saturday.

Hashemi further expressed hope that the projects will be put into operation as soon as possible and will be fully completed.

Referring to the fact that most of the uncompleted projects underway in the capital are car-centered [including highways, bridges, etc.], he noted that we need to move forward toward using public transport, especially subway, rather than private cars.

If the public transport projects exploit, good things will happen, he said, adding that currently, 200 kilometers of subway lines are under construction in Tehran, however, due to lack of proper facilities, we could not fully use of its capacity, that is why the subway lines are operating with a quarter capacity.

It is essential to increase subway ridership to 6-7 million per day by increasing more lines, which needs a budget of 250 trillion rials (about $6 billion), he concluded.

Tehran subway system consists of five operational lines, stretching to 170 kilometers, and two lines of 6 and 7 are under construction. The lines link south to north, east to west and are gradually covering more neighborhoods. By completing the two aforementioned lines 70 kilometers will be added to the current railways.

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