4 places where the war affected the housing market in Tehran; The Iranian economist's article in the British scientific journal deciphered the "contradiction of the real estate market in Tehran in the last year". What type of economic theory explains the response of housing demand in the 40 Day War? Housing market outlook: 1 Two Iranian economists in a scientific article published in the UK examined "Tehran's housing market from before the 12-day war to after the 40-day war" and answered "contradiction". 2 Dr. Mohammad Reza Farzangan and Dr. Hassan Kollifour analyzed in this article the behavior of the demand side as well as the trend of the supply of apartments in the housing market in Tehran during the last year.
"Why did the nominal price of the sellers fly during the war, despite the decrease in the desire of the apartment buyers and the decrease in transactions? Their findings identified four reasons for this inflationary stagnation in housing: ◀ The first reason / voluntary suspension of demand Real estate buyers, under conditions of extreme uncertainty about the future, avoided taking actions to treat the property; This response can be analyzed within the framework of the theory of "true judgment".
Therefore, when there are geopolitical uncertainties and acute risks, the most logical and effective option is to wait and postpone major economic decisions. ◀ The second reason / Paralysis of financial systems During the last 2 wars, the systems needed by merchants for the purpose of transferring property broke down or were closed and this had a negative effect on housing transactions. ◀ The third reason / Reluctance of real estate sellers from a nominal loss in conditions of inflation and high inflation expectations, as well as an increase in construction costs, the "replacement cost of the property" becomes very high, and as a result some owners stop selling, and those who are willing to sell raise the "price expectation floor". The existing files in the market are affected by luxury units or high surface area. ◀ The fifth factor is also effective in raising the nominal price level of real estate sellers, and is the "stickiness of prices on the way down".