Iran Mercantile Exchange to run housing market
TEHRAN, Iran, May 29
Iran's Mercantile Exchange is ready to start presale of housing units per square meter under futures contracts, said Managing Director of Iran's Mercantile Exchange.
"There have been negotiations with the Ministry of Road and Urban Development for the sale of property, barter of construction material, sale of houses per square meter and launching real estate funds in capital market," said Hamed Soltaninejad, Trend reports citing IRNA.
"Futures contracts that have been launched in the exchange six years ago finance various industrial, mineral, petrochemical and agricultural sectors; therefore, there is sufficient experience in this regard to be implemented in housing sale at Mercantile Exchange," he added. "The housing market at the exchange is aimed to increase people's savings; for example, an individual who wishes to invest in house sector can directly buy property per square meter on exchange and invest with even little sum."
"It's possible that some individuals do not have sufficient capital to purchase an apartment, but they can purchase property per square meter until their capital increases based on price of house," he said adding that mass housing constructors should offer the futures contracts, so that they can finance their construction and deliver the housing units.
"Transforming properties and commodities into bonds would facilitate public investment and create transparent market. Sale of houses per square meter would help people to afford a house despite fluctuation in housing prices," he said.