A view from the Iranian capital Tehran

Housing Price Surge Continues In Tehran Amid Iran's Economic Turmoil

Monday, 02/12/2024

The latest report from the Iranian government has revealed that housing price surges in Tehran show no signs of abating.

The annual inflation rate of apartments in the capital city has skyrocketed to 82.8 percent in the month of Dey (December 22 to January 20).

The Statistical Center of Iran, affiliated with the Organization of Planning and Budget, disclosed on Monday that the monthly housing inflation in Tehran for the month stood at 2.2 percent. The average price of apartments sold in the capital has surged to 806 million rials per square meter, equivalent to approximately $1,500.

The report also delineated the varying degrees of price hikes across Tehran's districts, with district one experiencing the highest increase and district 18 witnessing the lowest among the 22 districts.

The escalation in housing costs comes amid economic turmoil compounded by runaway inflation and a rapidly depreciating national currency. Iran's rial continues to plummet against the US dollar, with one US dollar now surpassing 550,000 rials, exacerbating the financial strain on citizens.

Furthermore, concerns over homelessness have been echoed by the Research Center of the Parliament, attributing the situation to "gross failures" within the housing system. Decades of policies, the center asserts, have disproportionately impacted low-income and vulnerable groups, exacerbating social inequalities.

In a country where real estate serves as a primary asset for safeguarding savings amidst currency devaluation, the surge in property prices underscores broader economic challenges. With the value of the national currency plummeting at least tenfold since 2017, Iranians are increasingly grappling with the erosion of their purchasing power and the imperative to safeguard their wealth amid economic uncertainty.

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