Housing prices fall as the dollar continues to fall
President of Tehran Real Estate Advisors Union: If the dollar continues to depreciate in the market, house prices will fall.
According to the International Iranian Stone Exhibition, Mostafa Gholi Khosravi said: "For a long time, the value of property in the country has depended on the price of the dollar, and for this reason, now the price of property in the country is accompanied by a lot of bubbles."
"As soon as the dollar rises, the price of apartments will rise, but the fall in the dollar will not immediately lead to a drop in housing prices, because expecting the dollar to return to an uptrend will lead to market resistance to falling prices," he said.
He continued: "However, our observation of the situation in the housing market indicates that if the dollar price continues to fall and the dollar remains at a balanced price, we will certainly be accompanied by falling prices in the housing market."
According to Gholi Khosravi, the government's plan to reduce the price of the dollar could affect housing prices and prevent prices from continuing to rise in the housing market.
The head of the Tehran Province Real Estate Advisors Union continued: 4% of the property price is related to the materials used in it, and if the government monitors the price of construction materials, we can reduce the price of housing again.
He continued by stating that 5% of construction materials are domestically produced: for example, why should the price of sand be 100% more expensive? Why is the supervision of the materials market weak? Partly due to the psychological atmosphere and partly due to the reduction of supervision.
Gholi Khosravi described the impact of foreign policy on housing prices as relative and said, referring to the US presidential election: "Neither the victory of the Democrats nor the Republicans will have any effect on reducing or increasing housing prices. The main issue is controlling and stabilizing dollar prices." The central bank expects the dollar to depreciate.
He continued: "Landlords should not refuse to offer their property under the pretext of determining the outcome of the US presidential election. Our experience as the Tehran Real Estate Union is that housing prices are falling in the market and prices are rising in the first six months of the year at the end of the year." Will not be repeated.
According to IRNA, according to the Statistics Center, the rental price index as one of the most important parts in estimating the consumer price index, in the summer of this year, the rental price index of residential units in urban areas reached 195.8 units compared to The previous season has increased by 3.8 percent.
In this season, the highest seasonal inflation rate was related to Hamedan province with an increase of 3.8 percent and the lowest was related to Sistan and Baluchestan province with an increase of 3.8 percent. Rental inflation rate this summer compared to the same period last year (point-to-point inflation), is 8.3 percent.
* IRNA
