ID : N-5268 Date : 2019/04/29 - 13:00
(Persia Digest) - The rising prices of housing in Iran over the past year has made it a dream for Iranian families to become house owners to the extent that an individual has to save all his/her income for 46 years to buy a house.
According to a report published by the Ministry of Roads and Urban Development in 1393 HS (2014), the years from 1389 to 1391 HS (2010-2012) marked the longest waiting period for Iranian families wanting to buy a house. During this period each Iranian family had to save one third of its income for 35 years in order to purchase a house. With an increase in incomes, the waiting time for buying a house dropped to 33 years in 1390 (2011) but jumped again to 36 years one year later due to a rise in housing prices.
► Rising prices adds one million to slum populations in Iran
► Sharp price hikes estimated for next Iranian calendar year
► Inflation of 5% to 230% for foodstuffs in Iran
► Iran's economic growth in 2019 - Negative or positive?
But with a growth of over 100 percent in housing prices over the past one year, every low-income Iranian family has to wait 46 years to buy a house.
According to the Central Bank of Iran, the average price per square meter of housing in Tehran is 11.27 million tomans (805 dollars). In other words, to buy a 75-square-meter residential unit, a family has to pay 845 million tomans (over 60,000 dollars) while the minimum salary is 1.5 million tomans (107 dollars) per month. This means if the price of housing remains unchanged, one has to save all his/her income for 46 years in order to buy a house.
► Economic growth rate of -3.8% for Iran
► Poll: Financial issues top the concerns of Tehranis
► Reception halls in Tehran stand idle
Loans paid by building societies such as Maskan Bank to home buyers covers only 20 percent of the total price of a unit.
So it is not exaggerated to say that buying a house for the low-income families in Iran is more like a dream than reality.
Click here for more economic news.
► Follow us on Twitter