200% increase in housing prices in the last 5 years

200% increase in housing prices in the last 5 years
  • 2020-12-14
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The official of the Ministry of Roads, referring to the 200% increase in housing prices in some parts of the country during the last 5 years, said: the construction prices of the units of the national housing plan will increase.

According to the International Iranian Stone Exhibition, Parvaneh Aslani stated about the housing market forecast: "Unless we know the variables affecting the housing sector and are sure of them, we can not comment on the housing economy and price developments."

He added: "Today we had a meeting with reporters and examined the effective variables." If inflation expectations, currency prices, etc. are controlled, fluctuations in the housing market will decrease in line with the exchange rate. Foreign exchange market shocks are in line with the housing market. Housing prices repeat the same behavior of the foreign exchange market with some delay.

He continued: to predict housing prices, we must first predict what the foreign exchange market will be like.

The director general of the Housing Economics Office stated: Therefore, housing prices will be stable in the short term and will decrease in the long run.

Aslani stated that the price of housing has increased by more than 200 percent in the last 5 years, adding that housing cannot be separated from the economy, but the two issues of price and household needs have made the housing situation unbearable.

He stressed: "Housing is not a commodity that can be removed from the household basket, if another commodity becomes more expensive, households can take it out of the consumer barrier."

Aslani pointed out that the local housing exchange is for financing the construction of housing, and added: "There is no way to open the housing knot other than launching the capital market, this market has the right tools to provide housing."

He announced the unveiling of standard self-housing bonds in the coming weeks and said: "One of the ways to maintain the value of public capital is to buy these bonds and reduce dependence on the banking system."

He also stated that the construction price of the units of the National Housing Plan is based on the price list of the Budget Organization. They hit.

Brokers are raising housing prices

Iraj Rahbar, vice president of the Mass Builders Association, also stated: The growth of housing prices during the last year was an unpredictable and false growth, the main reason for which was speculation and the entry of speculators. They did everything they could to buy and control the prices.

He pointed out that there is a discussion about the tax on houses in the country, adding: "On the other hand, there is a discussion about changing the government, and this issue caused the brokers to collect their amount."

He stated: In fact, housing hoarding entered the housing market and this was the main reason for the decrease in housing prices.

He added: "Of course, we still have the false price in the housing market, it has increased by 118% compared to last year."

He announced a 50% housing price bubble and said: "One of the effective factors in housing prices is land, which includes about 60%."

* Tasnim