Annual housing rental inflation exceeds 24%

October 11, 2020
real estate

TEHRAN - The Statistical Center of Iran (SCI) announced that the inflation rate of housing rentals in the 12 months ended on September 21 reached 24.3 percent, IRNA reported.

As reported, point-to-point inflation rate for house rent rose 28.9 percent in summer (June 21-September 21) compared to the same period past year.

The rental price index of residential units in urban areas reached 195.8 in the summer of this year, registering an increase of 2.7 percent compared to the previous season.

In the mentioned season, the highest seasonal inflation rate was related to Hamedan province with an increase of 16.4 percent, and the lowest was related to Sistan-Baluchestan province with an increase of 3.8 percent.

Back in August, the Central Bank of Iran (CBI) released a report which showed that rent price in Tehran city increased 27 percent in the first month of the summer (June 21-July 21) from its previous month.

The CBI report also indicated that the rent price in the capital city experienced a 31-percent rise in the said month compared to the same month in the past year.

The housing market in Iran has been experiencing inflation and rise in prices, both in terms of rentals and sales in the current Iranian calendar year (started on March 20).

According to Hesam Oqbaei, the deputy head of Tehran Real Estate Association, 37 percent of the country's urban population are tenants, who are from the low and middle classes of the society and their salary increase has been up to 22 percent, so if the rent prices were supposed to grow along with the house prices people won’t be able to afford it.

tehrantimes



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