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Surging prices may push Iran's housing sector back into recession

While property prices in Iran have jumped following turmoil across the economy, the sector is headed for another recession as the number of actual deals is dropping.
A view shows buildings under construction in Tehran, Iran January 20, 2016. To match IRAN-NUCLEAR/INVESTMENT  REUTERS/Raheb Homavandi/TIMA  ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. FOR EDITORIAL USE ONLY. - GF20000100959

Since January, Iran's housing sector has been in a long-awaited boom phase after a five-year recession — the longest dip in recent memory. But now the sector is in danger of sliding back into negative ground due to the sudden and massive price hikes across the country spurred by the ongoing currency crisis.

The Iranian economy — including the rial — has taken a beating since US President Donald Trump unilaterally withdrew from the Joint Comprehensive Plan of Action in May. As the currency plunged, volatility also spread to other markets, including property, which has seen continuous price jumps in recent months.

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