According to the online economy report; The housing market entered a new phase of activity from the end of April and moved with a gentle upward slope of prices. Most of the activists and experts called this price growth not prosperity, but the growth of construction costs due to the growth in the price of construction materials.
Although the housing market is far from extreme excitement in the buying and selling sector, and currently transactions in small units and small properties are being carried out partly due to affordability, but the growth of housing construction costs has caused the price to rise and ultimately the housing price to grow significantly.
Market activists and economic experts point to the growth in the price of construction materials and some inflationary expectations as the main reason for the high cost of housing and ultimately the increase in construction costs. Now these high prices have spread to the national housing project.
Iraj Rahbar, a member of the Board of Directors of the Mass Builders Association and the head of the Construction Commission of the Tehran Chamber of Commerce, in response to the question of whether the high cost of building materials has affected the construction costs and whether there is still a possibility of housing price growth? He said: The growth in the price of construction materials these days has not only affected the finished price of luxury and ordinary houses, but also affected the final production of national housing.
The construction cost of each square meter of luxury housing reaches 60 million tomans
He continued: The increase in the price of construction materials on one hand and the increase in the inflation rate on the other hand, in addition to affecting the cost of building luxury residential units, directly affected the construction of national housing and made them undergo major price changes. Currently, the construction cost of each square meter of luxury housing has reached 60 million Tomans.
Member of the Board of Directors of Mass Builders Association, in response to the question, how much is the construction price of each square meter of national housing now? He said: Currently, the members of the mass builders’ association are dealing with the national housing project, and it can be said that the cost of their construction has increased drastically in the past few months. Anyway, according to the contract, mass builders are forced to advance the projects, but the tripling of construction costs has made it difficult for them to continue their activities.
The cost of building national housing reached 35 million tomans per meter
Leader in response to the question that what number is included in the contract of mass builders with the government for the construction of national housing? He continued: The cost of building national housing was about 10 million tomans per meter, but now, with recent events, this number has reached 35 million tomans per meter. The statesmen should make a fundamental revision regarding the contracts. Because the contract mentions the issue of force majeure (war and natural disasters), which can revise the prices if it occurs.
The head of the construction commission of the Tehran Chamber of Commerce emphasized that the government should pay attention to the fact that the private sector cannot shoulder the problem of the growth of construction costs alone, so if the goal is to finish the projects as soon as possible, the government should pay special attention to the revision of the contract and construction price.
Pointing out that with this process and prices, both the applicants and the government will suffer, he said: We must reach an interaction in the contract regarding the continuation of the work, because if the prices are not analyzed, the process of building national housing will suffer many interruptions.
Leader in response to the question, what is the current process of building national housing? He continued: The process and speed of building national housing has slowed down. So, until the prices are adjusted and the government does not come to the conclusion that positive results cannot be obtained with the previous expenses, the speed and completion of the national housing units will be delayed.
The head of the construction commission of the Tehran Chamber of Commerce pointed out: The biggest pillars of decision-making for the housing and housing sector are the Supreme Housing Council, whose decisions have been delegated to the governors these days. Therefore, the analysis of national housing prices can have a positive effect on the speed and completion of national housing units.
He answered the question that how many national housing is being built in Tehran? He continued: It should be accepted that the private sector and mass builders are not to blame and that the imposed war has affected the entire country. Currently, 12,000 to 13,000 national housing units are being built in Tehran. Of course, a series of residential units were related to the national action in the previous government.
The leader added: About 90 percent of the residential units of the national initiative, which is about 3,200 residential units, have been completed, and about 9,000 national housing units have progressed by 30 to 40 percent.
Why didn’t housing prices decrease during the war?
He answered the question that usually during the war, housing prices should decrease, but in the last one or two months, we see that housing prices not only did not decrease, but also increased? He said: Housing prices will decrease if the war causes migration. But we see that this did not happen in the imposed war. However, the costs of housing production have increased and the prices have not changed for two years.
The leader pointed out: If the country reaches a stable economic stability and economic prosperity occurs, prices can go down.
