Residential rents in Iran’s cities have risen almost by 39 percent in the last reporting month compared with the same period last year, the Central Bank of Iran (CBI) reported on Sunday.
In the capital Tehran, rents increased by 35 percent as inflation has reached nearly 50 percent amid depleted government reserves that lead to the excess printing of local currency which resulted in excess liquidity.
Rising inflation usually manifests itself in real estate prices and rents with a delay of a few months.
Last year the government set a limit of 25 percent annual rent increase for Tehran and 20 percent in other cities.
The CBI report has shown that authorities were not able to enforce the regulation.
Iran’s currency has lost its value by more than eightfold since the end of 2017, when it became apparent the US would withdraw from the 2015 nuclear agreement. The currency rial steeply declined in 2018 as former US president Donald Trump abandoned the agreement and imposed heavy sanctions on Iran. Since then, rising inflation has pushed nearly 60 percent of the population into poverty.