Transparency and Private Sector Participation: The Solution to Housing Market Challenges

Seyed Mohsen Tabatabaei Mozdabadi, Secretary General of the Scientific Association of Urban Economics, in a conversation with Mehr reporter about the challenges and solutions for increasing the participation of the private sector in housing production and construction, said: Creating sustainable and transparent policies in the field of housing can significantly increase production in this field by facilitating conditions for the private sector.

He added: Allocating government land with appropriate conditions, as well as reducing interest rates and providing special facilities to builders, paves the way for increasing housing production.

Pointing out that tax exemptions and economic incentives can increase the incentive to invest in the housing sector, the Secretary General of the Scientific Association of Urban Economics of Iran stated: Lack of transparency in real estate pricing is one of the main problems in the housing market, which causes price fluctuations and instability in this market.

Regarding the factors of housing price fluctuations, he explained: The first point is the lack of specific standards; In many countries and regions, there are no uniform standards for assessing property prices, which leads to arbitrary pricing and makes the market opaque.

The Secretary-General of the Urban Economics Scientific Association continued: The second point is incomplete and inaccessible data; information related to property transactions is usually not easily available. This information is key for buyers and sellers, but lack of access to it prevents decisions from being made correctly. The third point is the influence of intermediaries; real estate intermediaries may provide information in an incorrect and self-serving manner, which also contributes to a lack of transparency and may lead to an increase in prices and the creation of a bubble in the market.

Tabatabaei Mozabadi also added about speculation in the housing market: Speculators in the housing market seek to gain the maximum possible profit. This behavior can manifest itself in several ways, the first form is buying and selling properties and land at low prices, the second form is unnecessary developments, and the third form is manipulating prices.

The editor-in-chief of the Quarterly Journal of Economics and Urban Management, referring to the manipulation of prices in the housing sector, said: In some cases, speculators use specific techniques such as buying and selling small parcels at high prices to manipulate the market and keep prices falsely high.

The official stated: In order to resolve these issues and increase transparency in the housing market, it is necessary for the government and relevant institutions to take the necessary steps to regulate the market and create legal and information platforms.

Tabatabaei Mozdabadi, continuing with the topic of increasing transparency in the housing market, stated: Transparency in the housing market is one of the keys to improving the performance of this market and reducing financial problems due to lack of trust and possible abuses.

He also presented several solutions for transparency in the housing market, saying: The first step is to create modern databases, which include launching an advanced housing transaction registration system and maintaining and analyzing its data professionally. In the next step, developing and implementing pricing standards, training appraisers and real estate consultants, regulating the market by the government, raising public awareness and education, promoting electronic interactions, strengthening supervision and inspections, and protecting consumer rights are some of the things that will be effective in the transparency of the housing market.

The Secretary General of the Iranian Urban Economics Scientific Association concluded by saying: Increasing transparency in the housing market requires public cooperation between the government, the private sector, and society. By implementing these solutions, a stable, secure, and transformative market can be achieved in which all stakeholders can benefit from better conditions.

The Future Economy