The small role of stone prices in increasing housing rates
Secretary of the Iranian Stone Association: When the cost of mining machine parts becomes more expensive, the cost price of stone also increases; Therefore, the increase in the price of mining machinery is one of the important factors in increasing the price of building stone and consequently the increase in housing prices.
According to the Iran International Stone Exhibition, the increase in housing prices in Iran is not influenced by one factor, but by factors such as rising land prices, inflation, weak sustainable policies, policies and instructions, rising production costs, market problems and profiteering. It has been speculators.
In this report, we have focused on the issue of housing price growth and its impact on the growth of building stone prices, or vice versa, ie the growth of stone prices and its impact on housing prices. Since Iran is one of the countries that is very rich in stone resources and is one of the ten producing countries of this product, it is expected that stone will not increase in price and this will not affect housing prices, but the problem is that stone prices are affected by rising costs from time to time. Exploration, extraction, etc. increase, and this affects the price of housing, albeit slightly.
In addition, sometimes various factors such as the profitability of brokers and intermediaries affect the price of housing, and this causes the price of building stones to increase.
The need for government support for the stone field
Ahmad Sharifi, secretary of the Iranian Stone Association, said that the increase in housing prices in our country has various factors: Housing prices go back to various parameters, including the price of construction materials, land prices and general inflation in the country. It is natural that the price of stone, like other items, is subject to the decisions of the people of the hour, the weakness of sustainable policies and inflation; As a result, stone has naturally risen in price, and this has significantly affected housing prices.
Referring to the increase in the price of mining machinery and parts, the secretary of the Iranian Stone Association said: "When mining machinery parts become more expensive, the cost price of ore will also increase;" Therefore, the increase in the price of mining machinery is one of the important factors in increasing the price of building stone and consequently the increase in housing prices.
Sharifi said that the only way to save the country's stone industry is a boom in exports. "We have submitted many proposals and requests to the government and the Ministry of Industry, Mines and Trade to consider facilities for stone industry activists, but no significant action has been taken yet." .
The secretary of the Iranian Stone Association continued: It was suggested that four strong export consortia be formed in four provinces of the country, including Tehran, Isfahan, Markazi and Fars. The companies that are created must be able to enter the stock market as well. We further demand that the initial capital of these companies be provided by the government from the note of the Mining Law so that they can achieve success in the processing sector and enter the target markets.
Referring to the situation of stone in the country, Sharifi said: "Most of the income of artisans and the class of producers in the field of stone comes from domestic consumers." In fact, the most accessible source of income for our stone factories is the domestic market, which unfortunately is not in a good situation today.
He emphasized: Considering that nowhere in the world is stone consumed as much as in Iran, by focusing more on this market, we can increase our sources of income and move in the direction of a production leap.
The role of profiteers and speculators
Baqer Mohammadi, CEO of a mining company, said that the increase in stone prices does not have much effect on housing prices, said: fluctuations in stone prices in our country affect the increase or decrease in housing prices, but this effect is not great. He stressed: "The important issue is that housing is a final commodity whose price increase is not always subject to an increase in the price of construction materials, and may be due to rising land prices, speculation of profiteers and speculators."
The CEO of the mining company stated that the main reason for the increase in housing prices is the lack of support for production: "When production in the country is in trouble and many factories stop working, investors and those who have the necessary liquidity, without real housing needs." They buy so as not to lose the value of their capital. This has a negative impact on the economy and, in part, on the livelihoods of families seeking refuge.
Mohammadi said that in four provinces of East, West, Zanjan and Fars are active in the mines of building stones, silica, kaolinite and stone processing, he said: He mentioned the required parts and machinery, wages and, in general, the unusual increase in production costs.
The mining activist said that the increase in costs sometimes does not follow the free exchange rate of the dollar, adding that customs and the market sometimes act as monopolies and import unconventional parts due to sanctions issues; As a result, prices are several times higher than they should be. He stressed: "When the cost of production increases, the production of building stones becomes more expensive and housing prices rise."
Concluding remarks
The increase in housing prices in our country has various factors, and it is natural that the price of building stones is also influential in this regard. Experts believe that various factors have been effective in this price increase, such as the role of intermediaries and brokers, the increase in the price of machinery, and so on.
