Expert says growth in capital's real estate market inevitable
By Amina Nazarli
Many see real estate as one of the best ways to make money and build wealth.
When you buy a share, the only way you can make money is if the stock appreciates in value, and you sell it at the good time. As for real estate you can make money in many ways, including renting and increasing equity.
Today investment in residential real estate in large cities is of particular interest and value, as business in large metropolitan areas thrives much faster. That is why buying apartments, houses and other commercial premises that are located in the capital is much more profitable than buying more luxurious and expensive real estate, for example, somewhere in the province.
The real estate market has gradually started to gain momentum again in the capital of Azerbaijan. The period of low real estate prices affected by the crude price decrease in the world is left behind and now the situation has become more stable, which opens up more opportunities for investing money in real estate.
Rise in prices on the real estate market of Baku is inevitable, believes Nusret Ibrahimov, General Director of the “MBA Group” consulting company.
Currently, the market continues to experience stabilization, which is confirmed by insignificant price fluctuations. In June, prices in the real estate market of Baku decreased by 0.59 percent.
“Usually, when the market sees a growth for several months in a row, then there may be a slight decrease within a following month or two,” he told Trend. “A similar situation is observed in our country. After the market demonstrated growth for several months (since the beginning of the year property prices rose by 0.56 percent and in May the growth was 1.37 percent), in June prices fell by 0.59 percent. This is normal, and it shows that the market is gradually stabilizing, and the subsequent rise in prices in the real estate market is inevitable.”
Ibrahimov said that a number of factors have a positive effect on stabilizing the situation on the market, thanks to which the market revived after a sharp decline of prices last year (in 2016, prices on the Baku real estate market fell by 31.53 percent).
“Factors such as construction of social housing, restoration of the activity of the Azerbaijan Mortgage Fund, implementation of a number of state projects, and restoration of bank lending, contributed to the stabilization of prices on the market. Thanks to these factors, the market began to show growth again and since the beginning of the year prices have risen by 0.56 percent,” he explained.
Earlier, Ibrahimov said that in 2017 the real estate market could grow by ten percent, which can also contribute to the gradual adaptation of the population to the current situation.
Since early 2017, the market as a whole has grown by 0.56 percent, although the indicators in some segments of the market showed a decline.
Last year, prices in the real estate market of Baku in dollar terms decreased by 31.53 percent.
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Amina Nazarli is AzerNews’ staff journalist, follow her on Twitter: @amina_nazarli
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