Tehran home sales up 18.5%

More than 14,800 residential units were sold in the Iranian capital during the month ending Nov. 21 to mark an increase of 18.5% year-on-year.

According to the latest figures released by the Central Bank of Iran–the entity in charge of releasing official economic data–the average price of an apartment in Tehran during the aforementioned month also reached 48.9 million rials ($1,192) per square meter, registering a 10.9% growth compared with the same month of previous year.

In the first eight months of the current Iranian year (started March 21), the average price of homes in Tehran and the number of their sales increased by 7.1% and 7.7% respectively. The average price stood at 46.5 million rials ($1,134) while the number of deals exceeded 113,800 during the period.

Due to its significant share in the country's real estate, Tehran's property market is often indicative of the national status of an industry that supports some 300 subsectors.

This is while during the eighth Iranian month to Nov. 21, the number of home sales and the average price of a square meter of an apartment in the capital registered a respective increase of 6.9% and 2.1% compared to the same month of the previous year.

New apartments (up to 5 years old) still account for the lion’s share of house sales in Tehran at 47.2% on November, but their share witnessed a decline of 5% year-on-year.

However, as the Iranian government provided incentive packages for builders to move their activities to distressed parts of the city and rebuild old neighborhoods, during the one month period, demand for houses that were 16-20 years old witnessed an annual surge of 78.4% to account for 12.7% of the total house sales in the capital.

As the report indicates, residential units older than 20 years and apartments that were 6-10 years old also experienced an increase of 49.1% and 24.2% in their sales YOY, marking 9.3% and 15.6% of the total number of deals, respectively.

District 5, located in the city's northwest, recorded the highest number of residential real-estate deals during the month to May 21, accounting for 16.5% of the total deals in the capital. District 4 and 2 followed with 11.6% and 10.1%, respectively.

As cited in the report, the average price of residential units in District 5 reached close to 60 million rials ($1,463) per square meter which, according to CBI statistics, is considered to be above Tehran's average price.

This is while high-end District 1with an average price of 102.7 million rials ($2,504) is the priciest area while on the opposite end of the city in southern parts–including District 18 (the cheapest neighborhood)–the average home price hovers around 23.7 million rials ($578) per square meter. Prices in districts 1 and 18 grew by 5.5% and 10.8%, respectively.

END