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Iran's housing market in recession

Business Materials 14 June 2021 17:08 (UTC +04:00)
Iran's housing market in recession

TEHRAN, Iran, June 14

Trend:

Iran's housing market is in recession as everyone are waiting for the outcome of the presidential election in the country, said the head of Iran’s Property Advisers Union Mostafa Gholi Khosravi, Trend reports citing ILNA.

"The country's housing prices have increased in recent years, while low-purchasing power of the population affected the housing sector," Khosravi said.

"The government announced in June 2020 that the housing prices increased by 48 percent, which naturally affected the market. The real estate agencies did not have a role in the increase since they are only monitoring the situation," he said.

Another problem is that purchasing a house in Turkey is cheaper [for Iranian citizens] than in Tehran, due to increased prices, Khosravi said.

"The public sector and banks have fully entered the local housing market, and moved towards production and expanding infrastructures through using people's savings alongside houses construction and trade. Banks buy land and build houses but keep the houses empty in order to sell the houses with higher price," he explained.

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