Housing and utilities is the main source of spending for Iranian households, accounting for --.- of total spending in ----. Utilities prices are low by global standards, given the country s vast energy resources. Electricity and water prices are heavily subsidised by the Iranian government, which contributes to pushing costs down. Nonetheless, elevated cost of rent, especially in the capital Tehran, continues to result in housing and utilities accounting for almost a third of total household spending. As investment picks up in the country - especially in the retail and tourism sectors - this will maintain pressure on real estate prices. ...Given that households spend large amounts on rent and utilities, we believe that they will continue to limit spending on furniture and other extras for their home. Nonetheless, we still hold a positive outlook for spending on furniture among top income households, as highlighted by the proliferation of luxury design stores in Tehran, appealing to affluent, urban consumers.
...A large population, a sizeable middle class by Middle East & North Africa (MENA) standards and an uptick in economic growth will drive household spending throughout our forecast period to ----. We project household spending (in USD terms) to grow by a compound annual growth rate (CAGR) of -.- over ---------. ...This will drive spending per capita from USD-,--- in ---- to USD-,--- in ----. The Iranian economy continues to benefit from the removal of economic sanctions in Q---, following the nuclear deal reached between Iran and the P-+- council in July ----. Following the removal of sanctions, inflation has dramatically declined, which will have a positive impact on consumer confidence. ...Following the removal of sanctions, inflation has dramatically declined, which will have a positive impact on consumer confidence. With foreign companies now able to invest in Iran, the robust consumer story will offer significant investment opportunities over the next five years.
...We forecast household spending (in USD terms) to increase by a compound annual growth rate of -.- over ---------, highlighting the strong potential of the sector. The development of new shopping centres - especially those operating in the luxury segment, such as Giant Iran Mall in the north of Tehran - and the opening of Rosha, the first department store, in ---- points to fast growth in retail space in the country. ...
