Azerbaijan, Baku, Oct.7 / Trend F.Karimov/
The value of one square meter of land for residential building increased by 160 percent in Tehran over the past year, which ended on March 20, ISNA reported.
Rentals in the Iranian capital city rose by 31.2 percent compared to the year before, according to the Statistical Center of Iran.
Residential land and rundown buildings were sold at 58 million rials per square meter on the average in Tehran.
Built-up land was also sold at 42 million rials per square meter, up 8.5 percent compared to the year before.
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.