Housing business in Iran up by 16%

Business Materials 1 September 2016 13:36 (UTC +04:00)

By Fatih Karimov – Trend:

Baku, Azerbaijan, September 1

House dealing in Iran has increased by 16 percent during the first five months of the current fiscal year (March 20-Aug. 21), compared to the same period of preceding year, Ali Chegeni, an official with the Ministry of Roads and Urban Development, said.

The rate of house price to inflation has decreased by 30 percent during the recent three years in the country, Chegeni said, the official website of the ministry reported.

He further said that the housing sector is gradually overcoming stagnation.

Chegeni added that the private sector shares over 95 percent of the construction projects in housing sector.

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 reached $346 billion during the two terms of the administration of ex-President Mahmoud Ahmadinejad (2005-2013), was main reason for the rise in housing prices.