Surging US dollar could help Iran’s dull housing market- expert
Baku, Azerbaijan, Aug. 27
By Farhad Daneshvar – Trend:
Although a group of officials have expressed optimistic views over the future of Iran’s housing market, a financial analyst suggests that the market is very unlikely to climb out from the current recession in near future.
Alireza Kadivar, a financial analyst and the Deputy Chief of Iran’s Novin Investment Bank, however, believes that a dramatic surge in the rate of US dollar against Iranian national currency and also the hike in the global prices of commodities could leave a positive impact.
“I believe we should not expect a considerable surge in the housing market in near future unless global prices of commodities continue their sharp surge and the rate of US dollar against Iranian national currency dramatically hikes,” Kadivar told Trend.
Elaborating on his opinion, Kadivar added that the housing market in Iran normally surges when the rate of US dollar considerably increases.
“If the rate of the US dollar against Iranian currency hikes over the coming months, no doubt that the performance of the housing market will improve”
President Hassan Rouhani over his first term (Aug 2013-2017) was reluctant to give up his policies on protecting the national currency. He will probably continue and follow up on the same policies on protecting rial (Iran’s national currency) in the second term, he added.
“In the meantime, the domestic traders and investors are more interested in risk-free options like the treasury bills. Therefore they would not show any interest in investing in the housing market”
Iraj Rahbar, chairman of the Housing Association of Tehran last week told Trend that the housing sector of Iran was emerging out of a long recession and major improvements in the situation were expected.
The head of Tehran Association of Realtors, Hesam Oqbaei had earlier said that the total numbers of the signed deals associated with the housing sectors of Iran and Tehran, for the month ending on July 22, stood at 49,805 and 16,156 respectively, indicating a respective drop of 6.8 percent and 6.3 percent compared with the previous month.
A group of economists believe that the housing sector is capable of helping Iran’s economy to beat the deep recession as it could push other sub-sectors of economy and industry forward.