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Housing construction decreases by 38.2 percent In Tehran

Business Materials 20 August 2013 13:43 (UTC +04:00)

Azerbaijan, Trend, Aug. 20 / N. Umid

Housing construction in Iran's capital city Tehran has decreased by 38.3 percent during last three months of the last solar year (ended on March 21) compared to the same period of the previous year, Statistical Center of Iran reported.

According to the report, during the period some 3,956 house construction licenses have been issued by Tehran's Municipality which includes some 37,176 houses.

The figure also shows a decrease by 19.2 percent compared to the previous season (September 22- December 20, 2012).

According to the report, total area of licensed constructions reaches 7.504 million square meters during the last three months of the last solar year which indicates a 23.2 percent of decrease compared to the same period of the previous solar year.

Total ground area for the issued licenses reached some 1.533 million square meters during the period which indicates a 30.4 percent of decrease compared the previous year's last three months.

Average ground area for each of construction licenses reaches 388 square meters, the report said.

It should be recalled that, since autumn 2011, real estate prices in Iran's major cities, and especially in Tehran, have skyrocketed, turning developers into overnight millionaires.

Part of the increase is due to a rise in the price of housing materials and land, which was triggered by the cut in fuel subsidies and the sharp drop in the exchange rate for the rial in relation to foreign currency.

Some economists say that the huge level of liquidity, which has reached 346 billion dollars during the two terms of the administration of ex-president Mahmoud Ahmadinejad, is the main reason for the rise in housing prices.

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