Will housing sector lead Iran’s economy out of recession?
Baku, Azerbaijan, Sept. 28
By Khalid Kazimov – Trend:
The recent reports on Iran’s housing market could be considered good news for the country’s economy as many believe that the housing sector is capable of helping the economy to beat the deep recession.
The reason behind the opinion is the capability of the housing sector to push other sub-sectors of economy and industry forward.
Iran’s housing market appears to be emerging from recession as Tehran, the country’s largest housing market, saw a growth of 9.2 percent in the month to September 22 compared to the same time last year.
Iraj Rahbar, chairman of the Housing Association of Tehran earlier told Trend that the housing sector was emerging out of a long recession and major improvements in the situation were expected.
According to the latest report by Central Bank of Iran, the number of sold flats in the last Iranian month reached 15,500 units.
This is while the average price for per square meter of flat in Tehran increased by 9.7 percent to reach 47,600,000 rials (about $1,200).
On the other hand, the markets statistics covering the first half of the current fiscal year (Starting March 20) shows that 85,200 units were traded in six-month period in Tehran City, indicating a rise of 2.8 percent year-on-year. In the meantime, the average price for per square meter rose by 6.2 percent.
The inflation rate in Iran’s urban areas for the 12-month period to the sixth Iranian calendar month of Shahrivar (ended on Sept. 22) hit 9.9 percent, which indicates a fall by 0.1 percent compared to the preceding month
Iranian parliamentary research center has forecasted that the economic growth of the country in the currency fiscal year (starting March 20) would stand at about 3.7 percent.
The research body of Iranian parliament through a recent report has suggested that the growth of oil sector, industry, construction and service will respectively reach 3.8 percent, 4.1 percent, 2.5 percent and 2.8 percent.
The country's GDP (including the oil sector) reached 1,836.427 trillion rials (about $55 billion according to official rate of 33,000 rials per USD) in the first three months of the current fiscal year.