TEHRAN – Deputy Head of Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA) says the establishment of the country’s real estate stock exchange is going to promote transparency in this market.

According to Hossein Selahvarzi, establishing this stock exchange is going to be an opportunity for making the transactions in the housing market more competitive and transparent, and will gain people's trust for participation in mass construction projects, ICCIMA portal reported.

Speaking in a meeting with the officials from Iran's Mercantile Exchange (IME), which is in charge of the establishment of the real estate exchange, Selahvarzi said: “We are studying various aspects of the project.”

The official noted that the Real Estate Exchange Company is going to be established with an initial capital of 50 trillion rials (about $1.2 billion), of which 50 percent will be offered to people in the form of underwriting, while 25 percent will be shared among government agencies and another 25 percent is given to private sector companies.

“Companies wishing to participate must submit their initial application; these companies will be allocated up to 2.5 percent of the total capital which would be 1.25 trillion rials (equal to nearly $29 million).”

Underlining the great capacities of this exchange, Selahvarzi said the capital market has the ability to define practical tools for financing the real estate market and large construction projects, and it will make people more confident in participating in the implementation of such projects.

Last week, Finance and Economic Affairs Minister Farhad Dejpasand announced the establishment of the country’s real estate stock exchange.

The minister had stated that the Economy Ministry was finalizing the issue with the Securities and Exchange Organization (SEO).

EF/MA