Azerbaijan, Baku, September 24 /Trend N. Umid
Daily house dealing in Iran has diminished by 43 percent during current solar year (started on March21), compared to the last solar year, the head of the National Property Advisers Union Mostafa Gholi Khosravi said, Iranian Shargh newspaper reported.
Khosravi went on to note that, according to the statistics of the Iran's Housing Deals Information System, averagely 14,000 house deal contracts registered in the country per day during last solar year, meanwhile the figure has decreased to 8000 contracts per day during current solar year.
House prices have decreased by some 2 percent during last 20 days, he added.
Housing prices in Iran would not face any serious increase till next year, Khosrovi forecasted, adding that, the prices would not decrease no more.
He underlined that, the house prices increase sharply when inflation rate increases, meanwhile when inflation or foreign currency rates decreased falls happen more slowly.
Iran's housing construction also suffers some 30 percent contraction, Shargh reported citing Statistical Center of Iran.
In August, the Statistical Center of Iran reported that, 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, reported.
The figure also shows a decrease by 19.2 percent compared to the previous season (September 22- December 20, 2012).
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.
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.