Real estate prices jump
By Nigar Abbasova
Real estate prices increased in July 2016 in Azerbaijan, as compared to prices fixed in June, recording a growth of 0.08 percent.
The CEO of MBA Company and real estate expert, Nusret Ibrahimov, said that the rise in prices was observed for the first time in a long while, nevertheless the prices have significantly decreased as compared to the indices observed in early 2016.
“The prices in a real estate market have decreased by 25.58 and 29.1 percent as compared to the indices fixed in early 2016 and 2015, respectively,” he said.
The expert mentioned that the uplift is mainly triggered by the increase in prices in the market of commercial property, as well as rent of housing and other properties.
“An increase was also observed in the market of commercial property, where prices have increased by 3.61 percent in July. Meanwhile, a reduction of 16.8 percent had been observed in the market since early 2016, while the decrease rate stood at 20.16 percent as compared to the prices fixed in July 2015,” Ibrahimov added.
Prices in the market of housing rent have increased by 1.2 percent, while the prices in the property rent market have grown by 7.82 percent. The prices in the rent of houses and property have decreased by 28.2 and 26.44 percen,t respectively, as compared to July 2015.
He mentioned that a decrease was observed in the primary and secondary housing market as well as in the land plots market. The decrease stood at 1.71, 2.21 and 0.41 percent, respectively.
“Certain reduction of prices is always observed in summer season. In my opinion, the next decrease will be observed this month, while a relative growth is to be observed in autumn,” he said.
Earlier, Ibrahimov said that there is no direct relation between oil prices and real estate prices but the former may influence real estate prices by means of a number of factors which are “black gold” dependent. These factors include money stock, exchange rate, GDP growth rates, employment rate and inflation. He also added that the changes in oil prices would be insignificant, and unable to influence drastically the market till they reach the price amounting to $50-60 a barrel.
The average apartment cost per square meter in Baku city centre currently amounts to approximately 2,417 manats ($1, 500). Prices outside of centre average to 1,006 manats ($ 625).
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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