Housing rental falls in Tehran city in a quarter on year

The Statistical Center of Iran (SCI) has announced that the housing rental in the capital city Tehran has fallen 3.1 percent in the third quarter of the current Iranian calendar year (September 21 – December 20, 2020) from its previous quarter, while rising 40.9 percent as compared to the third quarter of the past year.

The center has previously announced that the inflation rate of housing rentals in the country reached 24.3 percent in the 12 months ended on September 20 (end of the first half of the current Iranian year).

As reported, the point-to-point inflation rate for house rent rose 28.9 percent in summer (June 21-September 21) compared to the same period last year.

The rental price index of residential units in urban areas reached 195.8 in the summer of this year, registering an increase of 2.7 percent compared to the previous season.

In the mentioned season, the highest seasonal inflation rate was related to Hamedan province with an increase of 16.4 percent, and the lowest was related to Sistan-Baluchestan province with an increase of 3.8 percent.

The housing market in Iran has been experiencing inflation and rise in prices, both in terms of rentals and sales in the current Iranian calendar year (started on March 20).

According to Hesam Oqbaei, the deputy head of Tehran Real Estate Association, 37 percent of the country's urban population are tenants, who are from the low and middle classes of the society and their salary increase has been up to 22 percent, so if the rent prices were supposed to grow along with the house prices people won’t be able to afford it.

source: TehranTimes