Rents In Iran Increase By 40% In Three Months

An economic daily says housing prices and rents in Tehran have jumped in the past three months by at least "40% compared to the previous quarter.

Donyaye Eghtesad (World of Economy) said in a report on Saturday that in the first weeks of Iranian new year (starting March 21), the number of newly built units offered for sale increased slightly, but the housing market transactions did not return to normal.

The daily also added that "the proposed prices are much higher than the expectation of the buyers".

Meanwhile, Jam-e Jam daily, which is owned by Iran's state broadcaster, reported that "the government has lost the ability to monitor the chaotic housing market."

"In less than two and a half months, the relocation of tenants will reach its peak, but the plans of the government and parliament to control the rental market have failed, with many tenants more worried about the unreasonable increase in prices," stressed Jam-e Jam.

In the meantime, Saeed Lotfi, a member of the board of directors of the Tehran Real Estate Consultants Union noted that “the government presents plans that are not based on expertise.”

Rents and home prices have climbed as much as inflation and the value of the US dollar have risen in recent months, reaching a level that an ordinary worker must hold two or even three jobs just to afford basic housing. Workers make between $100-150 a month, calculated by the current rate of the dollar which is 510,000 rials.

Food prices have increased between 70-100 percent in the past 12 months on top of high inflation in the previous year.