The average price of each square meter of a residential property in Tehran saw a surge of 10.5% month-on-month and 77.4% year-on-year

A total of 9,080 homes were sold in Tehran during the fifth month of the current fiscal year (July -Aug. 21), registering a 35.4% decline compared with the preceding month and a 175.8% growth compared with the 3,292 deals in the corresponding month of last year.

Data published by the Central Bank of Iran on its website also indicate that the average price of each square meter of a residential property in Tehran stood at 231.07 million rials ($966) during the month under review, which shows a surge of 77.4% over last year’s same month as average prices were registered at 130.25 million rials ($545) then.

Home prices in the capital city increased by 10.5% compared to 209.09 million rials ($874) in the fourth month of the current year.

Details of Property Deals

The CBI data also show that during the month ending Aug. 21, newly-built residential properties up to five years old constituted the highest proportion of deals with 38.5% (or 3,492 deals), down by 3.3 percentage points compared with the same month of last year.

That lost share was added to homes more than 11 years old. Homes with a lifespan of 11-15 years, 16-20 years and above 20 years accounted for 13%, 17% and 13.3% of total deals compared with the same month of last year’s 12.7%, 14.9% and 11.8%, respectively.

The share of deals involving homes that were six to 10 years old decreased from 18.8% of the total deals of last year’s same month to 18.3% this year.

The distribution of dealt properties shows that among Tehran’s 22 districts, District 5 grabbed the highest share of total deals at 15.1%. It was followed by districts 4 and 10 both with a share of 8.5%.

All-in-all, 10 districts (five, four, 10, two, 14, eight, seven, 15, one and 11) grabbed the lion’s share of the deals at 72.4% with the remaining 12 districts holding a 27.6% share.

Among Tehran’s 22 districts, District 1 registered the highest average home price of 528.2 million rials ($2,210) per square meter. District 18 offered the capital city’s cheapest homes with an average per-square meter price of 97.5 million rials ($407). The aforesaid numbers show a respective increase of 87.2% and 63% YOY.

Residential units with an average price range of 120 million rials ($502) to 140 million rials ($585) per square meter were the most popular in Tehran during the Iranian month under review, as they grabbed a 9.4% share of all deals. They were followed by units priced at 140 million rials ($585) to 160 million rials ($669) per square meter with a share of 8.7% and homes priced at 100 million rials ($418) to 120 million rials ($502) per square meter with a share of 8.2%.

From the total number of deals, 58.9% belonged to homes cheaper than the average per-square meter price (i.e., 231.07 million rials or $966).

Residential units with a floor area of 50-60 square meters registered the highest number of sales with a 14.1% share of total deals.

Units with an area of 60-70 square meters and 70-80 square meters came second and third with shares of 13.9% and 11.9%, respectively. All-in-all, residential properties with an area of less than 80 square meters had a 53.2% share of total deals.

CBI data further show that Tehran’s homes worth between 6 billion rials ($25,104) and 8.5 billion rials ($35,564) were highest in demand with a 14.3% share of total deals. These were followed by homes with a price tag of between 3.5 billion rials ($14,644) and six billion rials and those priced at 8.5 billion rials and 11 billion rials ($46,025) both with a share of 10.2% of total deals.

Collectively, homes valued under 16 billion rials ($66,945) had a 52.5% share of total home deals in Tehran during the fifth month of the current year.

Five-Month Perspective

During the five months of the current Iranian year that started on March 20, the number of home deals finalized in Tehran totaled 46,458, which shows a 56.9% year-on-year rise.

In the same period, the average price of each square meter of a home in the capital stood at 190.46 million rials ($796), signaling a YOY surge of 49.7% compared with the four months of last year.

Tenancy in Urban Areas

The central regulator also reports changes to tenancy prices in the capital city and across its urban areas.

According to CBI, the price of rented residential units in Tehran and across urban areas increased by 27.4% and 30.6% respectively during the fifth month of the current year compared with the similar month of last year.