Title: Navigating the 2024 Housing Market: Stability and Regulation in Tehran
A Market in Flux: Official Insights on Tehran’s Real Estate
In a recent press conference, Kianoush Goodarzi, the head of the Tehran Association of Real Estate Consultants, provided a detailed analysis of the capital’s housing market, highlighting a period of nominal price adjustments and overall stability. The report offers crucial insights for potential buyers and investors navigating the current economic landscape.
Price Adjustments: Nominal Shifts vs. Actual Contracts
Goodarzi addressed recent reports of price fluctuations, clarifying that while some areas in southern Tehran have seen announced increases of 5 to 10 million Tomans per square meter, these changes remain largely nominal. The Association’s market monitoring indicates that these new price points have not yet materialized into finalized contracts, and their actual implementation requires further verification.
In contrast, the northern districts of the capital have demonstrated significant price stability, with no substantial changes in selling prices recorded. Goodarzi had previously noted potential decreases of 30 to 50 percent in some areas, but current observations confirm that the market is holding steady.
Rental Sector and External Factors
The rental market mirrors this trend of stability. Goodarzi reported that prices have largely remained constant, with the majority of lease agreements being successfully renewed with tenants. This points to a balanced and predictable environment for both landlords and renters.
When questioned on the potential impact of international mechanisms on the domestic housing market, the official emphasized its inherent resilience. He stated that the real estate sector is primarily driven by internal dynamics and domestic factors, with external elements having a minimal influence on pricing and transactions.
Regulatory Framework and National Standards
Shifting focus to policy, Goodarzi detailed developments concerning the implementation of regulations for officially registering real estate transactions. While initial proposals from relevant national bodies suggested a single national index for setting agent fees, the Association successfully argued for a more nuanced approach.
Goodarzi highlighted that transaction values vary significantly not only across the country but even within Tehran’s 22 districts. Therefore, applying a uniform national standard was deemed impractical. After deliberations, a supervisory high council decided that commissions would be determined by applying a coefficient to the estimated value of the property in each specific area.
Ensuring Compliance and Future Implementation
A key stipulation of the new regulation is that the revised fee structure will not be lower than the current rates. To ensure compliance, any violations by real estate consultants will be met with fines of up to three times the commission value.
The official noted that the new bylaws are scheduled to take effect three months after their final approval. This timeline allows for government departments, including tax authorities and supervisory commissions, to prepare and provide real estate consultants with the necessary transactional value data for their respective regions. This system is designed to standardize fees and ensure they are no longer directly influenced by the fluctuating price of the property itself.
