Housing Market indicates flourishing soon, says the Ministry of Roads and Urbanization

The Ministry of Roads and Urbanization announced that in the first 9 months of the current Iranian fiscal year, housing transactions have increased by 9% compared to the same period of the previous year.

“In Iran, the process for constructing a building takes two to three years from licensing to completion. The number of recently completed apartments, shows that the market has left the recession and the investment in construction is increasing. Furthermore, the negative growth of issuing licenses has stopped. Altogether these indicators show that the housing market will flourish soon”, said Ali Chegani, Director of the Office of Housing planning and Economy.

In order to keep up with demand, The Ministry of Roads and Urbanization is in talks with the Central Bank to assess available facilities such as providing loans to house buyers.

The policy adopted by the Ministry of Roads and Urbanization is not to increase housing prices but rather to create a balance in the market. However, if the price of housing does not increase in line with inflation, investors lose motivation for investing in this area.

“the 8 to 9% growth of in housing market from March to December 2016, compared to 2015, has not caused any sudden changes in the prices. Furthermore, based on indicators of added value, a significant improvement can be observed in this sector. These indicators showed negative growth in Spring 2016 while in Autumn 2016, positive figures indicate improvement in quality”, concluded Mr Chegani.