Simulation of the Tehran housing market with special focus on Inflation: A system dynamics approach

Housing markets patterns and the parameters of Tehran as a metropolis has faced with largevariations in recent decades.The most appropriate tool for analyzing such complicated systems and finding the result is Simulation. In this paper, we use Vensin software for simulating the model. At first, we determine the important variables in the housing market and their relations with respect to economic theories. We apply an especial focus on the effects of inflation. The data between 1997-2009 (from Iran Central Bank and Statistics Center of Iran) are used for simulation.