What is the real housing inflation?
What is the real housing inflation? According to Iran Gate, the recent housing inflation in the capital and surrounding cities and satellite towns of Tehran has been published. According to these statistics, the point-to-point housing inflation in Tehran and its suburbs in April 2023 was recorded at over 100%. The published report indicates that the inflation rate in the poorer areas of Tehran was significantly higher than in the affluent neighborhoods of the capital.
In the first part of the series examining the real housing inflation, the statistics related to point-to-point inflation in Tehran province were analyzed. This present report, which is the second part of this series, examines and analyzes the statistics and figures related to the inflation in various neighborhoods and areas of Tehran.
What is the housing rate in Tehran’s neighborhoods?
According to a report published in domestic media, the average housing price in Tehran province has experienced an increase of more than 100% compared to April 2022. In this report, the lowest price was recorded in district 18, and the highest housing rate was recorded in district 1 of Tehran. The price range of housing in Tehran is very wide, ranging from 18 million tomans per square meter to 167 million tomans, as registered by media and regulatory authorities.
Housing inflation rate in the 22 districts of Tehran
An examination of the inflation rate in the 22 districts of Tehran shows that district 10, with a 149% inflation rate, is at the top, and district 1, with a 59% point-to-point housing inflation, is at the bottom of this table. As seen from the top and bottom of this list, there is a very deep gap between housing inflation in the poorer and affluent areas of Tehran, which is clearly visible in the table below.
District 1
This district includes old and well-established neighborhoods like Tajrish, Evin, Ozgol, Jamaran, Dezashib, and Bagh Ferdows. By looking at the housing rates in these areas, one notices a significant statistical difference between older areas and newly developed neighborhoods. However, according to published statistics, the point-to-point housing inflation rate in April 2023 was announced at 59%, meaning the average property price in district 1 of Tehran in April 2022 was 59% cheaper than the price of the same property in April 2023.
District 2
Neighborhoods such as Saadat Abad, Gisha, Tehran Villa, Daryan No, and Sattarkhan are in district 2 of Tehran. This district is also one of the most expensive neighborhoods in Tehran. However, for instance, in neighborhoods like Sattarkhan, considering which part of this neighborhood the property is located in, a high price difference has been recorded. Nonetheless, the point-to-point housing inflation rate in this Tehran neighborhood has been recorded at 104%, which is lower than the average inflation rate in the capital.
District 3
District 3 of Tehran Municipality is also one of the affluent neighborhoods of Tehran, including areas like Vanak, Zargandeh, Dorous, Amaniyeh, Qolhak, and Seyed Khandan. The point-to-point housing inflation rate in this district is more than 30% lower than the average of the 22 districts of Tehran and has been stabilized at around 75%.
District 4
Eastern and Western Tehran Pars, Northern Narmak, Lavizan, Shams Abad, Hakimiyeh, Shemiran No, Golshan, and Majid Abad are among the most important neighborhoods in district 4 of Greater Tehran Municipality. The housing price in these areas is lower compared to the previous three districts, although in some areas like Lavizan and Shiyan, the housing rate is much higher than other neighborhoods in district 4. Overall, this district can be considered a mid-range area of Tehran, and the point-to-point inflation rate for April 2023 for this district was recorded at 116%, which is about 5% higher than the average inflation rate in the capital.
District 5
Neighborhoods such as Ekbatan Town, Ferdows Town, Bimeh Town, Northern and Southern Punak, Northern and Southern Bahjat Abad, Program Organization, Northern and Southern Shahran, and Bagh Feiz are among the most important neighborhoods in district 5 of Greater Tehran. Given the vastness of this district, the housing price also covers a wider range. For example, the housing rate in Ekbatan is significantly higher than the property price in a neighborhood like Bagh Feiz. In any case, the point-to-point housing inflation rate in district 5 of Tehran in the time frame of April 2023 was 106%, which is about 5% lower than the average.
District 6
Neighborhoods such as Amirabad, Yusef Abad, Motahari, Jihad, Fatemi, Iranshahr, Sanaei, University of Tehran, Keshavarz Boulevard, and Laleh Park are among the most important neighborhoods in district 6 of Tehran. This district hosts the upper-middle-class citizens of Tehran. District 6 is studied as one of the indicators of middle-class purchasing power in various markets. The point-to-point housing inflation rate in this district was recorded at about 88%, but it is said that the highest demand for housing rental in this district has been recorded.
District 7
Bahaar Street, Northern and Southern Sohrvardi, Abbas Abad, Majidieh, Nezam Abad, Kaj, Heshmatiyeh, Khajeh Nasir, and others are among the important areas located in district 7 of Tehran Municipality. The point-to-point housing inflation rate for 2023 in district 7 of Tehran was about 113, which is slightly higher than the average in the entire capital.
District 8
Among the most important neighborhoods in district 8 of Tehran are Tehran Pars, Dardasht, Haft Hoz, Madaen, Fadak, Narmak, Majidieh, Kerman, Vahidiyeh, Sabolan, and others. District 8, known as one of the lower-middle-class areas of Tehran, recorded a 126% inflation rate for housing in April 2023.
District 9
This district, located in the west of Tehran, includes neighborhoods such as Shamshiri, Southern Mehrabad, Dastgheib, Imamzadeh Abdullah, Saraasiab, Mehrabad, Ostad Moein, and Fath. The point-to-point housing inflation rate in this area of Tehran was recorded at around 116%.
District 10
The point-to-point inflation rate in district 10 of Tehran in the housing market is the highest inflation rate among the 22 districts of Tehran. According to published reports, a 149% inflation rate in April 2023 has affected the housing market in district 10 of Tehran. This district includes neighborhoods such as Haft Chenar, Briank, Ji, Salsabil, Sepah, and Karun. In other words, district 10 of Tehran is one of the poorer areas of Tehran, which has a slightly better situation compared to other poor areas of the capital. Therefore, it is said that the middle class, due to the high cost of housing, has flocked to this area of Tehran, increasing the demand.
District 11
Enqelab Street, Jomhouri, Palestine, Moniriyeh, Amiriyeh, Har, Railway, Salamati, Jamalzadeh, Eskandari, and others are among the most important neighborhoods in district 11 of Tehran. This district, one of the busiest of the 22 districts of Tehran, has always been a hot housing market. The point-to-point housing inflation rate in district 11 of Tehran was recorded at around 96%. Analysts believe that due to rising prices, the middle class and students, who are the main housing applicants in this area, have been forced to move towards poorer areas.
District 12
District 12 is one of the oldest areas of Tehran, which includes neighborhoods such as Baharestan, Darvazeh Shemiran, Pamenar, Ferdowsi, Tehran Bazaar, Qiyam, Herandi, and others. The recorded inflation rate for this district was 93%. The demand for these areas is more administrative and commercial, indicating the worsening business situation in the capital.
District 13
Neighborhoods such as Sorkheh Hesar, Niroo Havaei, Piroozi, Safa, and others are among the most important areas located in district 13 of Tehran. This district, located in the east and southeast of Tehran, is considered one of the mid-range poor areas. The inflation rate in this district was recorded at 144%, which is more than 30% higher than the average inflation rate in the capital. Experts believe the housing market in mid-range poor and upper areas of Tehran is currently hotter than other parts of the capital. District 10 is also one of these areas, facing high demand from the middle classes.
District 14
District 14 of Tehran Municipality includes neighborhoods such as Shokoufeh, Qasr-e Firouzeh, Dolat, Javadieh, Saraasiab Dolat, Chahar Sad Dastgah, Mina, Delgosha, Taxi Rani, and others. The point-to-point housing inflation rate in this district was recorded at 119%, which is 8% higher than the average housing inflation in the capital.
District 15
Neighborhoods such as Afsarieh, Masgerabad, Moshiriyeh, Khavaran, Masoudiyeh, Abuzar, Kianshahr, and others are in district 15. This district, located in the east of the capital, is one of the poor areas of Tehran, recognized as one of the areas with high housing inflation in Tehran, with a point-to-point inflation rate of 125%.
District 16
Neighborhoods such as Naziabad, Yaghchiabad, Khazaneh, Bagh Azari, Takhti, and Baset Town are among the most important areas located in district 16 of Tehran. The 117% housing inflation in this district has made this southern area of Tehran known as one of the high-demand hubs for homebuyers in Tehran. However, due to the unique and worn-out texture of this area, the demand from property buyers is not as visible as in other mid-range poor and upper areas of Tehran.
District 17
District 17 of Tehran Municipality, which is also the densest part of the capital, is recognized as one of the poorest areas of Tehran. Neighborhoods such as Yaft Abad, Imamzadeh Hassan, Bloor Sazi, Sajjad, Zamzam, Bagh Khazaneh, Northern and Southern Abuzar, and others are among the most important areas of this part of the capital. The housing inflation rate in April 2023 in district 17 of Tehran was stabilized at around 149%. In fact, district 17, along with district 10 of Tehran, has the highest housing inflation rate among the 22 districts of Tehran.
District 18
Neighborhoods such as Shadabad, Shamsabad, Sadeghiyeh, Ferdows Town, Vali Asr Town, Shahid Rajai, and others are the main neighborhoods located in district 18 of Tehran Municipality. The inflation rate in this area of Tehran is also very high, calculated at 129%. This district, located in the west of Tehran, is almost recognized as one of the mid-range poor areas of Tehran.
District 19
Neighborhoods such as Northern and Southern Khani Abad, Khani Abad No, Bahmanyar, Abdul Abad, Nemat Abad, Esmail Abad, Northern and Southern Dolat Khah, and others are located in district 19 of Tehran Municipality. The point-to-point inflation rate in district 19 of Tehran is calculated at 113%. This district is also considered one of the poor neighborhoods of Tehran.
District 20
Neighborhoods such as Aqdasiyeh, Cheshmeh Ali, Javanmard Qassab, Hamzeh Abad, Deylaman, Taghi Abad, Beheshti, and others are among the most important areas located in district 20 of Tehran. The point-to-point housing inflation rate in district 20 of Tehran for the time frame of April 2023 was recorded at 106%, which is about 5% lower than the average housing inflation rate in the capital.
District 21
Among the most important neighborhoods located in district 21 of Tehran are areas like Chitgar, Vardavard, Tehran Sar, Ghazali, Vilashahr, and others. The housing inflation rate in this western area of Tehran is 118%. This district is also considered one of the mid-range areas of Tehran, which is a destination for many people who intend to migrate and relocate from Karaj to Tehran but do not have enough cash to buy housing in better areas of Tehran.
District 22
Olympic Village, Persian Gulf Lake, Havaniruz, Kouhak, Abshar, Zibadasht, and others are neighborhoods located in district 22 of Tehran. This district, located in the west and northwest of the capital, is recognized as one of the mid-range areas of the capital. The point-to-point inflation rate in April 2023 in district 22 was recorded at 88%, indicating low demand for property purchases in this part of Tehran.
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