The rising cost of construction costs is driving up housing prices

The rising cost of construction costs is driving up housing prices
  • 2020-05-17
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The member of the Civil Commission of the Majles stated that the municipality's action in increasing the cost of construction fees is the cause of the high cost of housing in the country.

According to the International Stone Exhibition of Iran, Seyed Kamaluddin Shahriari, referring to the effect of increasing the cost of construction fees by 40% on housing prices, said: Housing production is the product of four major costs, which are the cost of housing, land, materials Construction, workers' wages, and tolls and administrative taxes are included, so the rate of each of these issues will increase, in turn, on housing prices.

He added that the administrative costs include the cost of preparing the plan, the cost of the supervision sheet, the cost of obtaining a construction permit, the cost of receiving electricity, water, gas, and the cost of finishing the work.

"Some say that increasing construction fees is an anti-production policy, but I think it's true that it will affect the market, but as long as there is a wide demand for housing, the production process will not stop," he said. Was.

The member of the Civil Engineering Commission of the Majles stated that the increase in housing prices will be the result of a 40% increase in the cost of construction fees, adding: "This action of the municipality is to the detriment of low-income sections of society."

Emphasizing that the 40 percent increase in construction tolls targets only real applicants and real estate buyers, Shahriari said: "People who enter the market with the intention of investing have enough capital to buy housing, but the real applicants are the same." The weak and middle classes are the society, which is facing problems with rising prices.

* Tasnim