NCRI – Soaring Iranian property prices have doubled the cost of rented accommodation in parts of Tehran, the latest figures have revealed.
Realtors believe that an increase of between 50 and 70 per cent in house prices last year has caused the lurch in rental prices.
Economists have also blamed the rising cost of house building materials for the price increase.
The highest rises have been in northern and southern parts of Tehran, where rents have gone up by ten to 15 per cent more than they did last year.
A realtor in 19th district of Tehran said: “Rents have gone up by ten to 15 per cent compared to last year. However, the important issue is that the rental market is stagnant despite seasonal exchanges.
“The number of customers last year was due to the low prices. However, this year the 15 per cent increase in rents has caused the customers to turn their back on housing services.”
Another realtor said: “The increase in the price of housing in the past few months has reduced the purchasing power of many customers, and this has has also eliminated them from the housing market.
“In the middle of last year, a potential tenant asked the housing services for a 50 meter squared residential unit. But after the sudden price increases, he said he could no longer afford it.”
And a realtor in the district of Saadat-Abad also confirmed the price rises, saying: “Rentals have doubled in price since last year.”
