BAKU, Azerbaijan, March 24
By Elnur Baghishov - Trend
National housing project of the Iranian government providing low-income families with land and credit is a generally positive step in the housing market, Iranian expert on housing Afshin Parvinpour told Trend.
According to Parvinpour, although the number of apartments provided to low-income people in the national project is relatively small, the initiative may create a positive opinion among the population.
Parvinpour added that Iran's housing market is affected rather psychologically than economically, and the government project can reduce the psychological pressure.
However, the prices are not expected to fall in the housing market in current Iranian year (began March 20, 2020), the expert said adding that if there are no changes in the macroeconomy, this situation will continue.
According tothe expert, there is no significant gap between supply and demand in the housing market, as there is not much difference between the number of families looking for housing and the number of available apartments. However, irregularities in this area have led to higher prices.
"Iran's economy is under the influence of politics. MPs elected in the last parliamentary elections can help eliminate existing inconsistencies in the economy," he said.
Parvinpour said that if the Iranian parliament can prevent these discrepancies next year, there is a hope for stability in the housing market.
So far, 1.6 million people have been registered in Iran under the national housing plan. The plan envisages providing citizens with land or housing or providing them with loans to buy housing.
Apartments in major cities in Iran, especially in Tehran, are very expensive. For example, the average cost of 30-year-old 100-square-meter apartment in Tehran is 19.9 billion rials ($473,000), the 30-year-old 205-square-meter apartment costs an average 71.7 billion rials (about $1.7 million).