Housing Devours 80% of People's Income | Private Sector Not Optimistic About Iran's Economic Future

A member of the Board of Representatives of the Tehran Chamber of Commerce, pointing to the housing market slump and declining household purchasing power, said: Economic actors under current conditions cannot be optimistic about Iran's economic future, and above all are waiting for stability and normal conditions to return.

Messiah Heydarian; Iran's economy is facing a series of economic challenges in the second half of 1405; Challenges that have affected the living conditions of households and the purchasing power of people to the activities of companies and the conditions of various economic sectors. As a result, private sector activists need economic stability, the possibility of planning and the provision of suitable conditions to continue their activities more than ever before.

Iraj Rahbar, head of the Civil, Construction and Infrastructure Commission and a member of the delegation of the Tehran Chamber of Commerce, in a conversation with Ambassador Arjan, focused on the situation of the housing and construction sector, explained the prospects of Iran's economy in the second half of 1405 and said that the country's economic conditions have affected the activities of various economic sectors.

housing; One of the most important sectors affected by the state of the economy

Referring to the role of the housing sector in Iran's economy, Iraj Rahbar said: Housing is one of the drivers of Iran's economy, and the construction and housing sector has a significant contribution to the country's economic activity. For this reason, economic developments quickly affect the construction situation and the housing market, and stagnation or prosperity in the economy can be reflected in this sector as well.

The head of the Civil, Construction and Infrastructure Affairs Commission of the Tehran Chamber said about the current situation of the housing market: The housing market is currently not in a good condition and is facing stagnation. At the same time as the stagnation of transactions, the increase in housing prices continues and the decrease in the purchasing power of households has limited the possibility of doing transactions for a significant part of the people.

purchasing power of households; The main challenge of the housing market

Referring to the relationship between the purchasing power of households and the state of the housing market, the leader said: The decrease in purchasing power of people is one of the important factors that has affected housing transactions. When household income is not proportional to the cost of purchasing housing, the effective demand in the market decreases and the market cannot reach the desired level of prosperity.

A member of the delegation of the Tehran Chamber of Commerce, emphasizing the connection between the housing market and the general state of the country's economy, added: "The problems seen in the housing market today cannot be analyzed separately from the general state of the country's economy." Households' economic conditions, purchasing power and living expenses directly affect people's ability to provide housing.

People's livelihood should be the priority of economic policy

Referring to the importance of the livelihood status of households in Iran's economy, the leader said: In the current situation, one of the most important economic priorities of the country should be maintaining the livelihood of the people. Government men are also sensitive to the issue of livelihood and try not to increase the economic pressure on households.

Head of the Civil, Construction and Infrastructure Affairs Commission of the Tehran Chamber, referring to the share of housing costs in the household budget, added: Housing costs are one of the most important household costs, and the impact of rent and housing costs on people's livelihoods cannot be ignored.

Regarding the pressure of housing costs on households, he noted that households having to allocate a large part of their income to cover housing costs puts a lot of pressure on other parts of their lives. If 70 to 80 percent of a household's income is spent on housing, a very limited portion will remain for other life needs, and it will be difficult for people to continue such a situation.

The private sector is not optimistic about the future of the economy

In response to a question about the private sector's assessment of Iran's economic prospects in the second half of 1405, the leader said: Economic activists cannot be optimistic about the future of the economy in the current situation.

Referring to the conditions of economic activists in various sectors, the member of the delegation of the Tehran Chamber added: Economic activists in various fields, including import, export, industry, agriculture, and information technology, are involved in many issues and problems, and many of them are not very satisfied with the current situation.

Referring to the currency problems of economic actors, he emphasized: exporters and importers need currency and suitable business conditions to continue their activities. The state of trade and the way of providing currency is one of the important issues that directly affects the activities of businessmen and economic enterprises.

Banking and currency problems have made it difficult for economic activists to plan

Referring to the role of the Trade Development Organization in the activities of the private sector, the head of the Civil, Construction and Infrastructure Affairs Commission of the Tehran Chamber said: The Trade Development Organization is trying its best to cooperate with economic actors, but the problems in the banking network have made it impossible for all economic sectors to cooperate with economic actors.

Referring to the effect of banking and commercial problems on economic actors, the leader added: traders, exporters and importers feel the problems related to currency, banks and foreign trade faster than many other sectors due to their direct connection with the trade process. Economic activists try to solve these problems, but some of the issues are beyond their direct control.

A member of the delegation of Tehran Chamber of Commerce, while pointing out the extent of economic problems in different sectors, said: The existing problems are not limited to one area and sectors such as medicine, industry, auto parts, agriculture and housing are facing various issues.

The private sector is ready for the economy to return to normal conditions

The head of the Civil, Construction and Infrastructure Affairs Commission of the Tehran Chamber added: Private sector activists are ready to work in various fields, including industry, trade and agriculture, and there is energy and manpower necessary to continue economic activity in many companies.

Referring to the investments made in various economic sectors, he pointed out: the equipment and facilities required for many economic activities have been provided for a long time and the expectation of economic activists is that these capacities can be fully used, not that a part of the existing capacity remains unused.

Referring to the expectations of the private sector from the economic situation of the second half of 1405, the leader said: Economic activists are waiting for the return of normal conditions so that they can continue their activities with greater strength and implement their economic plans by using the capacity, manpower and equipment they have.