House rentals in Tehran rise over 30 percent
Azerbaijan, Baku, Sep.7/ Trend F.Karimov/
Rentals in Iran's capital city Tehran rose by 30.2 percent in the second half of the past Iranian calendar year, which ended on March 20, 2013, compared to the same period in its preceding year, Mehr News Agency reported, citing the Statistical Center of Iran.
Real states rented houses for 130,777 rials (about $5.2 based on the USD official exchange rate of 24,800 rials) per square meters area of land on the average (including 3 percent pre-payment sum), which was 30.2 percent more than the price in the same period in the year which ended in March 2012.
The value of one square meter of land for residential building was 12.329 million rials (about $489), which was increased by 49.5 percent in Tehran.
Residential land and rundown buildings were sold at 19.785 million rials (about $766) per square meter on the average in Tehran.
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 President Mahmoud Ahmadinejad, is the main reason for the rise in housing prices.
However, it seems that the psychological atmosphere created by developers and real estate agents is also at least partly to blame for the current state of affairs.