Real estate prices decrease in Baku
By Nigar Abbasova
Baku recorded a decrease in real estate prices in August, following a slight rise in July.
The CEO of MBA Company and real estate expert, Nusret Ibrahimov told Trend that the prices faced a decrease of 0.74 percent as compared to the indices of July.
The prices dropped by 27.85 percent, as compared to the rates of early 2016, while the decrease averaged 28.74 compared to the same period in 2015.
Ibrahimov related the decrease with the reduction of prices currently observed in the market of primary housing and commercial objects.
A drop of 3.47 percent was recorded in the primary housing market, as compared to figures of July, while a decrease averaged 24.53 percent compared to early 2016. The prices of commercial objects recorded a decrease of 22.36 percent since early 2016, while the drop stood at 6.69 percent in August.
A slight decrease was also observed in the market of land plots (0.66 percent as compared to July) and lease of commercial objects (1.69 percent). The prices dropped by 28.8 and 32.88 percent respectively compared to the beginning of the year.
The growth of prices was registered only in the market of secondary housing and leasing. The increase of 4.53 and 1.01 percent was recorded in secondary housing and leasing respectively. However, the prices dropped by 22.98 and 29.72 percent, as compared to the beginning of the year. Expert mentioned that a relative stability will be observed in the market till late 2016.
Regardless the drop, real estate, which has always been considered a reliable investment instrument, remains one of the most effective means to preserve and increase capital. The increase in cash flow into the real estate market usually makes a positive effect on a country’s overall economic development.
There is no difference in the rights of foreigners and local citizens in the field of buying a real estate. The foreign citizen, as well as the citizen of Azerbaijan can buy any property, except a land plot.
The average apartment cost per square meter in Baku city centre currently amounts to approximately 2,421.92 manats ($1,497.79). Prices outside of centre are 1,022.81 manats (632.536 in dollar equivalent).
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova--
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