
Housing economics round table in Isfahan
Housing with or without agreement
An excerpt from Mehdi Sheikh Sajjadieh’s speech in this round table:
The recession and reluctance to build is due to reasons that are partly public and have always been there. Nothing will happen in the housing market until the supply and demand sides are stimulated.
For the rest of the markets, such as the stock market and gold, there is a reference for pricing, but no specific rate is set for housing.
Every product that becomes expensive will affect the housing sector, and now if there is a discussion about JAMA, the only good thing is peace.
If these conditions continue for 3 to 4 years and the purchasing power increases, people will enter the markets.
On the other hand, the emotional entry of people into this market is reduced and the real consumer enters the market.
In short, the upstream regulations that exist in the discussion of building production do not allow mass builders to build small apartments.
The companies that have gone to the construction of small apartments have suffered losses with the existing regulations.
It seems that the best solution is to trust the private sector.
In Iran’s economy, including Mehr housing, the government has had a 3% share and the remaining 97% has been the private sector’s share.
Finally, with the efforts of the government, its share will be increased to 10%.
Therefore, it is better to put the energy that the government spends on increasing its share in the economy on the private sector.
Trusting the private sector, creating peace, development drivers for mass builders are among the supports that the government can have for the housing market.
The government can have the biggest help by easing the rules for the private sector.
In short, the use of tax incentives, insurance, urban development rules, infrastructure, allocation of facilities, etc. is considered as support that the government can apply to the private sector in order to grow the housing sector.
The result will be less energy and capital expenditure and multiple productivity.
Leave a Reply