Iran Stone :: Construction Stone

Testomony from our real estate client

2011-04-28T00:02:00.001-07:00

Below is a testimony from our German Client during their investigation to choose between our company or other local brokers. For more information on our asset management and property services please visit our website: Iran Property or contact us: info @ irxp . com

In the discussion for the right consultant support in Tehran:

In my evaluation I see advantages on the side of CB Richard Ellis.

Please consider that corporate real estate activities in Iran happen in a complex and emerging market. International brokers do not have an in-country capability.

CB Richard Ellis is working together with Source8, who is a leading Emerging Market consultancy.

The particular areas of risk in Tehran are the opaque market with no well defined standards, unclear property law and legislation and the security risk.

During my visit I learned that the Iranian Real Estate Market is fundamentally a landlord led market with very little visibility, high security issues, small number of quality options and high demand. The market is driven by high rents and landlord agent fees with no one acting for the tenants' interests.

To counter this and protect our interests, a tenant representative service is necessary that ensures the identification of all options, both on and off the market, from landlords, developers and agents that meet our specific needs and then negotiate the best commercial terms possible with regard to rental fee, service charges, lease obligations, etc.

But I think there are two stages of work. The first one is the occupancy analysis, which should give us the basis for the most suitable decision. In this stage the consultant is cooperating with us only, but of course he need also to analyse the real estate market in Tehran. For this consultant we are looking at the moment.

In the second stage the consultant need to contact landlords, developers and agents in order to realize the necessary real estate activities.

Due to compliance issues I prefer the cooperation with an international broker who is experienced in emerging markets and is acting according to an international quality certified process.

CB Richard Ellis is very experienced in both kind of works and therefore they offering a 50% discount on the first work, when they get the chance to get also the job for the second stage. For me it should be no problem, rather than an advantage, to ask CB Richard Ellis for the first work and when we satisfied with the result, we have all the freedom to choose them again or to look for an alternative.

Iran Real Estate market overview

2008-11-02T04:03:00.000-08:00

I have sent these info to Gulf News freehold weekly to be published after modifications. you may find it interesting also:

Iran's real estate market, a general overview
Prices: In Iran there’s a traditional thought of “real estate prices never fall!” people believe price are going on a step schema always, rising, fixing at some price and again rising. But the world crisis in property and real estate sector and also the past two years bubble that happened in Iran’s real estate market, have made a big impact on prices in major cities like Tehran, Tabriz, Mashhad and Isfahan.
A luxury apartment in north of Tehran in early 2006 was about 2000 USD per sq meter, grew up to 8000 USD in early 2008 and back to 5000 USD now. (an estimation for locations like Velanjak, Shahrak, Zafaranieh etc)
The main reasons making this bubble were:

- Rising cost of fuel and construction
- Being in a recession of past 5 years which the prices haven’t raised
- New loans issued by governmental banks (Maskan Bank)
- Inflation

Demand: the demand for apartments have always been beyond production in Iran. Especially low/middle income class people, who earn less than 500 USD per month each family, have been in this struggle always.
The government section, Mehr Found, has declared a new series of mass development for this class, constructing more than 100,000 flat in small cities near Tehran, on West, East and South in the next 50 months. The prices of such apartments would be lower than 1000 USD per sq meter.

Rent ratio:
Rent ration is low in Iran comparing to other GCC countries. If you consider the rate 10-12 percent of the value in Dubai, in Tehran you can rent for 5% and lower for other cities. But even these rent ratios are high for most of people comparing to their income.
There are statistics in Tehran that shows 20% of the properties are empty and this causes a problem also. government is about to put more taxation on empty property’s owners to let the rents come lower.

Valuation methods:
Appraising and Valuation practices in Iran are being generally made with experiences, subjective and uncontrolled by different profession member and legal formations. In Tehran the range of prices can vary from 1500 USD up to 20 times more per square meter. A property can be from 50,000 USD up to 50 billion USD!

Overall:
Like many other developing countries suffering from inflation, in Iran real estate has become an assurance and annuity item because of economy’s structure and lack of protection of savings against inflation.
Because of these specs, Iran’s Real Estate Market was widely open to the speculative effects especially to the impacts of economical and political decisions over past years, but now government is controlling the mass impacts and effects on the market for the middle and low class people. Beside this, Luxury constructors are following a different story and guidelines, where people are ready to pay any price for it.

Free hold property in Iran
Foreigners cannot buy property in Iran without diplomatic concerns and permissions. But there possibilities of registering 100% ownership companies in free zones like Kish Island and buy the property in its legal identity name.

Two sample projects in Iran - Tehran right now:
Tehran International Tower (commercial, office and residential): 220,000 square meters, 54 floors, 572 residential apartments from 40 up to 500 sq meters. 43 studio, 172 2-bedroom, 313 3-bedroom, 16 four bedroom, 17 duplex and 11 triplex

Millennium residential tower: 34 floors, 728 residential units, 92 commercial units

Other cities prices:
Kish Island: 2000 USD per sq m to 3000 USD
North of Iran: land: 200 USD up to 800 USD – apartment: 1000 USD to 3000 USD per sq m

mortgages are available only for native people with Iranian ID. There are two types of loans: Loans by governmental and private banks
Governmental banks have limited loans (right now up to 25,000 USD for a house built less than 10 years) the interest rate is roughly 11%
Private banks have no limit in loans, they usually lend up to 70% of the value of the property. The interest rate is roughly 24%

you can ask for any further information:
emad @ irxp . com
to Buy/sell/rent property in Iran visit here

Iranian Granite Construction Stone

2007-11-11T06:15:00.000-08:00

Granite is the most popular natural stone in Iran and also worldwide, making calibrated tiles, memorials, structural building slabs, Krebs and landscape garden stones. Granite is a hard and lustrous stone that is highly durable, stain and scratch resistant. Its crystalline texture and large variety of beautiful colors makes it the favorite stone for any applications. This visually stimulating stone lasts for several years and, thus, is often found in monuments, libraries, museums and stadiums. The natural character of this natural stone can not be matched by even the finest man-made, synthetic material. Iran's Granite Stones is familiar to entire world's construction industry. Many countries import Iranian Granite like Turkey, United Arab Emirates, France, Spain and Italy.