The Analysis of Metropolitan Housing Price and UGB in Iran: Application of Panel Data Technique in selected metropolises (Tehran, Isfahan, Shiraz)

Metropolitan housing development as an important economic sector not only affects level of macroeconomic activities directly in all countries but also macroeconomic development stimulates housing prices broadly. First, individual supply and demand in housing market is derived from utility and profit maximization and risk-return optimization. Then, equilibrium price and quantity is derived from intersection point of aggregate demand and aggregate supply. Special characteristics of housing market such as non- tradability and location-dependence distinguish its structure from other markets.