Real Estate Boom Hits Iran

[DragonflyProperties]

An article from today`s issue of The Vancouver Sun. Some excerpts:

A real estate boom in the world`s fourth-largest oil producer has been powered by President Mahmoud Ahmadinejad`s economic policies since he was elected in 2005, economic analysts say. Real estate prices surged by more than 100% in 2007, after rising by about 65 percent in 2006 and more than 50 percent in 2005.

With one million prospective owners coming on to the market each year and Iran capable of building only 600,000 new homes a year, conservative politician Mohammad Khoshchehreh said there was a shortgage of 1.6 million homes.

"Low interest rates, strong housing demand... and the threat of additional UN sanctions on Iran will fuel prices,"said Mehrdad Divani, a broker, expecting yet more Iranian capital to go into bricks and mortar.

"People have money and they do not trust Iran`s banking system because of political and economic instability", said Mansour Khalilian. "Also because the dollar and gold are losing value, people prefer to invest in real estate."

http://www.canada.com/vancouversun/news/st...28-73a1e96a3263

Keith

 

[Dejavu]

QUOTE (DragonflyProperties @ May 31 2008, 01:19 PM) An article from today`s issue of The Vancouver Sun. Some excerpts:

A real estate boom in the world`s fourth-largest oil producer has been powered by President Mahmoud Ahmadinejad`s economic policies since he was elected in 2005, economic analysts say. Real estate prices surged by more than 100% in 2007, after rising by about 65 percent in 2006 and more than 50 percent in 2005.

With one million prospective owners coming on to the market each year and Iran capable of building only 600,000 new homes a year, conservative politician Mohammad Khoshchehreh said there was a shortgage of 1.6 million homes.

"Low interest rates, strong housing demand... and the threat of additional UN sanctions on Iran will fuel prices,"said Mehrdad Divani, a broker, expecting yet more Iranian capital to go into bricks and mortar.

"People have money and they do not trust Iran`s banking system because of political and economic instability", said Mansour Khalilian. "Also because the dollar and gold are losing value, people prefer to invest in real estate."

http://www.canada.com/vancouversun/news/st...28-73a1e96a3263

Keith

Hmmm, good to know, but not sure if this is a place I would even consider venturing, not even for the promise of mega profits. Waaay too unstable. Mongolia on the other hand.....