Week n Brief 02.03.2018

Housing market in big cities has been flourishing over the last few months, experiencing a maximum of 20 percent increase in prices. According to Ali Chegini, Head of Planning Department at Ministry of Economic Affairs of Iran, although 43 percent of the recent sales were on apartments of 40 to 70 square-meter, but these sizes form only 12 percent of the new construction projects. This has created an imbalance between demand and supply. The Iranian household dimension has been decreasing over the past decades and this trend should continue for the next decade. On the other hand, the number of one-person households is growing and has reached 2 million, i.e. 8% of total Iranian household. All these facts, plus a growth rate of 2 percent for the household over the next decade, indicate that the housing market will see demand for small size apartments.