Landlords in north Tehran are asking exorbitant deposits of up to IRR120bn ($46,800) for luxury flats, according to listings compiled by the Tehran Real Estate Guild, a body representing the largest companies and housebuilders in the capital.

According to the standard rules in the country, most leases pair a large refundable deposit with a monthly rent, and landlords hold the deposit as working capital in an economy where cash loses value quickly; however, in recent cases, many landlords are asking for top-ups due to the collapse of the local currency, the rial.

That floundering currency stood at IRR2,562,000 to the dollar on the open market on October 1, against IRR1.52mn in late January and IRR1,749,500 after the February 28 strikes on Tehran, its lowest-ever rate against the US dollar and a basket of other currencies.

To make matters worse for the sector, the Statistical Centre of Iran put year-on-year rent growth at 31% in the month to April 20, when inflation ran at 73%, leaving rents trailing prices in rial terms and cheap in dollar terms, which has become a major issue across the country but particularly in cities like Tehran where real estate plays a major part in the country’s economy.

The latest survey covered 57 apartments up to 10 years old, of 120-200 sq m, in Districts 1 and 3. The highest deposit was for a one-year-old 170 sq m flat in Kamranieh, District 1 (the richest area), which also carries a monthly rent of IRR1.05bn ($410).

The highest monthly rents, IRR3.5bn ($1,370), were asked in Jamaran and Velenjak for 200 sq m and 170 sq m flats, each with a deposit of IRR30bn ($11,700), according to the latest floating rate on Ferdowsi, as seen by IntelliNews.

Eleven listings sought a deposit only, with no monthly rent. The largest of these, at IRR100bn ($39,000), was in Velenjak, Vanak and Pasdaran.

A 180 sq m flat in Zafaranieh combined an IRR100bn deposit with rent of IRR3bn ($1,170) a month, the costliest pairing on the list.

District 1, which runs along the foothills of the Alborz mountains, averaged an asking rent of IRR1.67bn ($650) a month across listings with a rent element, compared with IRR1.02bn ($400) in District 3, by IntelliNews calculations. Average deposits were IRR52.9bn ($20,600) and IRR46.4bn ($18,100).

Prices varied widely within districts across the capital. Two five-year-old flats in popular Tajrish area in the north of the city asked deposits of IRR40bn ($15,600) with monthly rents of IRR320mn-IRR350mn ($125-$137). A 150 sq m flat in Shahrak-e Mahallati sought IRR50bn ($19,500) plus IRR150mn ($59) a month.

The cheapest package was a 10-year-old 120 sq m flat in Gholhak, District 3, at an IRR10bn ($3,900) deposit and IRR900mn ($350) a month.