Iranian Government Requested to Control Housing Market
Over the past few years, many Iranians have started investing their funds in housing market in the hope of saving the real value of their money. Last year, Iranian rial lost 50% of its values against foreign currencies. This impacted almost all the economic sectors of Iran in a negative manner.
“Currently, low-income households are literally unable to buy a new home or apartment. Young couples are also suffering from the same problem. Unfortunately this issue has caused other social problems in Iran.” Karim Aghazamani, the managing director of a real-estate agency in Tehran, told the Herald Boy.
Karim Aghazamani believes that the government plays an important role in resolving the common crisis in this sector. “In my opinion, the Iranian government should take actions with regard to controlling the housing market in the country. Constructors and contractors are making billions of profit from the housing market, while the ordinary people cannot afford to buy any properties.”
The Iranian government under Mahmoud Ahmadinejad started providing cheap homes and apartments to low-income families across the country. According to the statistics released by Bank Maskan, the government had also allocated $12 billion low-interest loans to applicants of Mehr Housing scheme.
Although Mehr Housing scheme was well-received by major economists, large numbers of people are not interested in living in Mehr houses because of their bad locations.
Ali Zamani, a staffer of Saipa Company, says he is forced to rent an apartment in Tehran since Mehr houses are located in suburbs. “In fact, it will take a lot of time for me to reach my workspace if I move to Mehr houses. So I have to continue renting apartment in Tehran.”
The Central Bank of Iran indicates that 70 percent of the Iranians own homes, with huge amounts of idle money entering the housing market. It is worth mentioning that the real estate sector contributed to 5% of GDP in 2008.