Iranian government considers giving housing loans amid stagnant market

Business Materials 17 May 2016 13:50

Tehran, Iran, May 17

By Mehdi Sepahvand - Trend:

The Iranian government on Sunday authorized loans to go to 200,000 housing units, government spokesman Mohammad Baqer Nobakht announced today.

He said accordingly, 120,000 rural housing units across Iran will receive 180,000,000 rials ($5,900 at 30,039 rials per dollar) with an interest rate of 5 percent, Trend correspondent reported from Tehran May 17.

The Planning and Budget Organization of Iran will pay for the difference between that 5 percent and the common banking interest charged on housing loans, he added.

Nobakht said there is also a loan of 200,000,000 rials to go to 80,000 other housing units each, which are situated in rural areas close to the country's borders.

That will also receive a 5-percent interest, he noted.

The spokesman further said the government will probably authorize loans for the houses in urban areas with conditions differing from those of the rural area loans.

Housing sector has gone stagnant for more than two years in Iran. Iranians hoped the sector would grow more robustly following the January nuclear deal implementation, but were left disappointed.