Ordinary Iranians are now facing a century-long wait to own a home amid skyrocketing prices as the average price in the capital reached about 860 million rials per square meter (approximately $1475) in June.
With working class Iranians making around $200 per month, local media estimate that it would take more than a century or longer for a wage earner to afford to buy the smallest residential unit.
Etemad newspaper wrote that based on the latest official statistics published by the Central Bank this figure has increased by more than 40 million rials per square meter (about $68) in the past two months.
The Central Bank report highlights that in June, a large portion of the housing demand has shifted towards areas with old and dilapidated structures. The developers have undertaken extensive construction in these areas, and now newly built "small-sized" houses have been able to attract some of the demand in the busiest areas of Tehran.
This trend also underscores the measures Iranians are taking to safeguard their savings against runaway inflation as real estate in Iran is a major hedge against inflation to protect savings.
While annual inflation hovers around 50%, the minimum wage for the current year has been set at 110 million rials (about $190), making it nearly impossible for many to make ends meet.
With such an income, the prospect of owning a home has become an impossible dream for many. Majid Goudarzi, a housing expert, told Tejarat News in February that “the waiting period for owning a home has now exceeded a hundred years.”
Etemad newspaper also cited a report by the Parliament Research Center in May, stating that the waiting time for the first decile of society to own a home has exceeded 123 years. This statistic highlights the housing crisis exacerbated by the government's economic mismanagement, leaving ordinary Iranians struggling to protect their savings and secure basic necessities.
