Housing business in Iran down by 13.2 percent
Azerbaijan, Baku, October 1 / Trend, N. Umid, S. Isayev
House dealing in Iran has diminished by 13.2 percent during first six months of the current solar year (started on March21), compared to the same period last solar year, Iranian Jahanesanat newspaper reported.
According to the report, some 502,000 house deal contracts registered in the country during the period, while the figure stood at 579,000 during the first six months of the last solar year.
Second and third months of the current solar year experienced the highest house deals during the period.
Iran's housing construction also suffers some 30 percent contraction, Iranian Shargh newspaper reported on September 24, 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.