The Real Deal New York

What selling real estate is like in Iran

For now, “flight from contract signing” is defining Tehran's RE market
March 17, 2018 04:06PM

(Credit: Pixabay)

Brokers in Tehran are caught between a rock and a hard place in what’s become a “very speculative” market.

As Iran’s currency wavers with news of its domestic and foreign political dealings, people worried about the devaluation of the rial are searching for properties to invest in, but the phenomenon of “flight from contract signing” — as local business newspaper Donya-e-Eghtesad put it — keeps thwarting their efforts, Bloomberg reports.

Sellers will move forward with a deal until the final stages, when they will suddenly demand higher and higher prices — largely to the result of the deal falling apart, according to Javad Baratloo of the agency Khaneh Bartar. He’s had six deals scuttled in this manner so far in 2018.

“Until two to three months ago, sellers were chasing buyers. Now it’s the exact opposite,” he told Bloomberg.

Donya-e-Eghtesad newspaper explains the motivation of sellers negotiating the price up at the last minute as “fear of selling their flat at a lower price than market demand.” For now, it seems Tehrani buyers are at the mercy of sellers regardless of  price point. [Bloomberg]Erin Hudson