Iran Economy in Brief – No. 88

Luxury apartments have no market

Maskan Bank has announced that in the housing market, most of the demand is towards small and medium sized units.

Abolghasem Rahimi Anaraki, Member of the Board of Directors at Maskan Bank said: “In spite of the demand for small size units, the average accommodation is larger than 100 square meters. Property developers should therefore focus on small size housing.”

He added that due to higher average incomes in Tehran, demand for deposit free housing loans are higher in Tehran.

He added: “Currently the demand for large, expensive and luxury apartments is very low compared to small and medium size units and luxury residences are still faced low demand.”

Roads under control

The first road weighbridge has been installed on Kashan-Ardestan road, at a cost of 8 billion IRR ($234 k) for the Ministry of Road and Urbanization. On the first day of operation, Abbas Akhundi, Minister of Road and Urbanization, said that another 64 weighbridges are on the way. “Using these weighbridges, we connect toll and IT sectors to prevent transportation of non-standard weights and damaging the roads”, said Mr Akhundi.

Equipping national roads with weighbridges is expected to generate 650 jobs for young graduates. To provide control, the Government has installed 1300 speed control cameras. Another 1000 cameras will be installed by the end of the next Iranian fiscal year, i.e. March 2019.

Bam and its fruitful palms

Ministry of Agriculture assigns 30,000 billion IRR (nearly $880 m) loan for under pressure irrigation systems.

“In addition to this financial facilities, to encourage farmers, we grant each farmer 75 million IRR ($2000) for each hectare of reclaimed land”, said Mohammad Ali Tahmasebi, Vice Minister of Agriculture visiting the province of Kerman.

Bam, a county in Kerman province, is confirmed to be the most productive place in Iran for date fruit cultivation. The Ministry of Agriculture claims that the yield in this area is 40 tons of date per hectare, whereas on average the production yield is 15 tons per hectare.

Mr Tahmasebi gave notice of the Ministry’s plans to support the production chain by further facilitating the procurement of packaging equipment and the reuse of palm wastes.