News ID: 199040
Published: 0300 GMT August 20, 2017

Iran's housing sector emerges out of recession: Official

Iran's housing sector emerges out of recession: Official

The housing sector is emerging from a long recession and major improvements in the situation are expected, according to a housing official.

Every recession should be followed by a natural period of prosperity, which, although delayed, is currently witnessed in the housing sector of Iran, Iraj Rahbar, chairman of the Housing Association of Tehran told Trend News Agency.

Total numbers of deals associated with the housing sectors of Iran and Tehran, for the month ending on July 22, stood at 49,805 and 16,156 respectively, indicating a respective drop of 6.8 percent and 6.3 percent compared to the figures for the previous month, said the head of Tehran Association of Realtors, Hesam Oqbaei.

The number of the housing deals associated with rentals in the first month of summer (started June 22) have also declined, both in Tehran and nationwide.

In the month to July 22, the number of the rental associated housing deals in the capital had reached 19,316, which indicate a drop of 9.1 percent and 18 percent compared with the month before and the same period of last year respectively.

The number of the rental housing deals nationwide in the mentioned period stood at 68,146, down by 5.4 percent compared with the figure for the previous month.

Rahbar noted that, rise in rental prices in the past few years was so substantial that even an increase in the number of the deals to be signed in the next few months, would not lead to another hike in rents.

He also pointed to the growing market in the housing industry's tourist accommodation sector, noting that foreign tourists are rushing to Iran following renewed diplomatic ties with the world, which brought about the need for new hotels and huge investments in this sector.

Iran has seen a growing wave of incoming tourists, ever since its government struck the deal with world powers in 2015 to reintegrate Iranian and global markets.

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