According to the Statistical Center of Iran's (SCI) Consumer Price Index report for Khordad 1405 (the Iranian month spanning May 22 to June 21, 2026), released in the first days of Tir (late June 2026), year on year rent inflation stood at 31.2%, compared with a national headline year on year inflation rate of 88.6% for the same month. That roughly 57 percentage point gap put the rent group at the bottom of the inflation table across all three of the SCI's measures (monthly, year on year, and 12 month average), a pattern some Iranian economic outlets have described as an "inverse record" for the housing market.
Background
In recent years, rent has typically been among the fastest rising items in the urban household basket, especially in Tehran, where the gap between home prices and household rent affordability has been under sustained pressure. The Khordad 1405 report marked a different pattern: monthly rent inflation of 2.4% ran below the 5.9% monthly headline rate, and the 12 month average rent inflation (32.8%) came in at roughly half the nationwide 12 month average (62%). Meanwhile, in Tehran's rental listings, advertised asking rents reached about 660,000 toman per square meter in Khordad 1405, up around 43% from Khordad 1404 (the same month a year earlier). Finalized rental contracts, however, averaged a lower figure of about 458,000 toman per square meter, suggesting asking prices were negotiated down before contracts were signed.
Key figures
| Measure | Nationwide (all items) | Rent group | As of |
|---|
| Year on year inflation (vs. Khordad 1404) | 88.6% | 31.2% | Khordad 1405, Statistical Center of Iran |
| Monthly inflation (vs. Ordibehesht 1405) | 5.9% | 2.4% | Khordad 1405, Statistical Center of Iran |
| 12-month average inflation | 62% | 32.8% | Khordad 1405, Statistical Center of Iran |
| Advertised Tehran rent per square meter | About 660,000 toman (up around 43% vs. Khordad 1404) | Khordad 1405, Tehran rental listings |
| Average finalized Tehran rent contract per square meter | About 458,000 toman | Khordad 1405, recorded Tehran rental transactions |
Drivers
Part of the gap between headline and rent inflation traces back to the composition of the CPI basket itself: in the Khordad 1405 report, several other groups, including furniture and home appliances (111.1% year on year), water, electricity and fuel (109.4%), and sugar and confectionery (101.6%), hit the highest point-to-point inflation readings recorded since these SCI data series began in the early 2010s (Iranian calendar 1390s), pulling the headline rate up faster than rent. On the other side, Iran's annual statutory cap on rent increases for renewal contracts is cited as one factor slowing rent growth on existing leases, though it does not apply in the same way to newly listed units or fresh contracts. Tighter tenant budgets and longer search times for higher priced units are among the other factors Iranian housing market outlets have pointed to.
Outlook
Whether this gap between headline and rent inflation persists in the months ahead, including through the summer season when tenant turnover typically peaks, is something housing market analysts are watching, particularly whether the slower pace of rent growth continues or picks up again as the lease renewal season approaches. This is an observation drawn from official data, not a price forecast or advice on rental or purchase decisions.
What to watch
The SCI's next Consumer Price Index report, covering Tir 1405, is typically released in the first week of Mordad (early August 2026) and will show whether the gap between rent and headline inflation continues. A Central Bank of Iran (CBI) report on Tehran's housing transaction market for Khordad 1405 had not yet been published as of this writing; its release would add a fuller picture of transaction volumes and average sale (not just rental) prices.
Disclaimer
This report is for informational and educational purposes only and does not constitute investment advice. All figures carry a specific reference date and may have changed since; verify information against official, up to date sources before making any decision.
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