Facilities should focus on the manufacturing sector
But perhaps another question that arises in this regard is that in the current situation, what would be a logical and effective solution in this area? In fact, if we want to find a solution to the housing market problem, we must reform the way facilities are provided.
According to the International Exhibition of Iranian Stone, housing is like many areas of capital affected by the foreign exchange market, and of course the difference with other areas is that the housing market may be the last capital market that is affected by currency fluctuations; With this argument, we realize that the current price of housing is related to about 6 months ago, which was 23 or 24 thousand dollars, and practically 30 thousand dollars has not yet had an impact on the housing market.
In fact, given the fluctuations in currency prices over the past months, it should be said that the housing market still has the capacity to increase prices and the lack of purchasing power of society has delayed this issue and with this situation the issue of price returns is eliminated It is unprecedented.
Given this issue, in the current situation, one of the main questions in the field of housing is whether loans as a solution can have a place and affect the price situation in the field of housing or not?
In answer to this question, it should be said that the most important role that mortgages can play in the market is to create a shock or a wave of price increases, and one of the most effective issues on increasing land prices, mortgages, rents and purchases is raising the mortgage ceiling.
Although in recent months it has been announced that the loan ceiling may be raised and then denied, this in practice has a psychological impact on the market and raises prices because any news in the housing market can cause severe turmoil.
The impact that mortgages have on this area is to strengthen the demand side, and strengthening the demand side in our economy has so far not responded as it should and perhaps has not.
In fact, in similar cases, this issue has only led to the freezing of banking resources and the creation of inflation and stagflation, and the result has been completely contrary to the intended goals.
Perhaps the allocation of loans in the field of automobiles is an example and perspective that can define the impact of this issue in the housing market.
A few years ago, the government introduced a multi-billion dollar credit line to stimulate demand in the car market, which did not solve the problem and led to the postponement of banks' resources, as economic shocks in the country made it difficult for people to pay installments.
There is a trend for housing as well, and by stimulating demand, not only will the situation not improve, but prices will rise further.
According to housing market reports in September this year, the price per square meter of residential infrastructure in Tehran has been announced as 24 million and 280 thousand tomans, which is a 98% increase compared to last year. So, considering a mortgage of 400 million Tomans, it should be said that this loan in Tehran covers about 20 or 30% of the property price and has practically no effect on purchasing power.
But perhaps another question that arises in this regard is that in the current situation, what would be a logical and effective solution in this area? In fact, if we want to find a solution to the housing market problem, we must reform the way facilities are provided.
In other words, the facility should be concentrated in the production sector instead of being provided in the form of loans to the demand side, and should be provided to the mass-producers of the private sector, and a comprehensive plan to intensify housing production with the participation of banks should be on the agenda. In this method, we must leave the repayment of the facility to the final applicant and do not allow the facility to be concentrated in the purchasing section.
Khashayar Bagherpour - Managing Director of the Union of Civil Cooperatives of Tehran - Samat
