Tehran’s housing market recorded an average price of IRT123mn ($1,075) per square metre at the end of the working week on November 18, maintaining extremely high price levels, Mashregh News reported on November 19.
Analysis of property advertisements in Tehran shows the figure reflects inflationary conditions in the housing sector and supply changes in the advertising market, where the highest volume of listings during the period was for newly built and small-area units.
Analysis of listings by building age shows newly built and young properties comprise the largest supply share. The zero to five-year age group recorded 3,525 advertisements, representing the most prominent market segment, apparently resulting from a construction boom in recent years.
Properties aged six to 10 years ranked second with 1,880 advertisements, indicating continued widespread presence of relatively new units in the market. Properties aged 16 to 20 years (1,707 advertisements) and units over 20 years (1,531 advertisements) comprised a significant share.
The smallest number of advertisements went to properties aged 11 to 15 years with 1,508 cases. Overall, approximately 42% of all registered advertisements related to units aged zero to five years, confirming the dominance of newly built supply in Tehran’s housing market.
From a size perspective, the supply pattern is completely clear. Small units top the listings. The zero to 60 square metre group with a 31.2% share comprises the highest volume of advertisements, indicating increased demand for cheaper units suitable for small and single-person families or even small investments. Units of 61 to 90 square metres followed with a 26.7% share.
Approximately 58% of all advertisements relate to units below 90 square metres, showing Tehran’s housing market has tilted towards small and medium-sized units more than ever before. Units of 91 to 130 square metres comprise 23.1% of advertisements, typically meeting average family needs. Units of 131 to 200 square metres account for 15%.
Units above 200 square metres comprise just 3.9% of all advertisements, reflecting limited supply of large luxury units in the market.
Overall, data analysis shows Tehran’s housing advertisement market at this point is influenced by two main trends: first, dominance of newly built unit supply, and second, remarkable concentration on small units. These trends may reflect supplier and builder behaviour facing reduced household purchasing power and increased construction costs.