TEHRAN – Head of Iran’s Property Advisers Union has said housing prices in the country should decrease at least 25 percent in order for people to be able to afford to purchase, ISNA reported.

Mostafa Gholi Khosravi noted that the closure of real estate agencies due to the coronavirus pandemic has caused some problems in this market, calling for the re-opening of the agencies in compliance with health protocols.

“The affairs of real estate offices are mostly done through phone and social distancing and health protocols are observed when the parties meet for signing contracts. So, these offices which have been constantly closed since the beginning of the current [Iranian calendar] year (March 21) should be re-opened,” Khosravi said.

The official also stressed the need for establishing a market regulation headquarters for housing sector to monitor the activities of dealers and real estate agencies in order to balance the prices.

Housing prices in Iran have been constantly rising over the past year due to various internal and external factors.

Coronavirus has been reported to be a major factor affecting the housing prices in Iran as the pandemic has stoked concerns about losing one’s savings and more people entered the housing market.

“People are turning to the housing market in order to protect their savings in the face of rising inflation. No one sees housing as a short-term consumer commodity. Even real consumers view purchasing a home as a long-term investment,” Mehdi Soltan-Mohammadi, a housing expert, said.

The average price of each square meter of residential properties in Tehran increased from 263 million rials (about $6,262) in March 2020 to 530 million rials (about $12,620) in March 2021, which shows a 101 percent increase.

Housing prices in Tehran city also rose 78.9 percent in the eleventh month of the previous Iranian calendar year (January 20 – February 18), as compared to the same month of the preceding year, according to the latest report released by the Central Bank of Iran (CBI).

EF/MA