Prices on real estate market to grow in 2018
By Sara Israfilbayova
Following the results of 11 months of 2017, prices on the real estate market are not so inspiring, but by the end of the year they may stabilize, Director General of MBA Consulting Group Nusrat Ibrahimov told Azernews.
The expert said that the prices in the land market and secondary housing market increased, while prices in the primary housing market, commercial property market, rental housing market and rental commercial property market decreased this November.
“The prices in the real estate market decreased by 7.73 percent in November 2017 compared to the same period of 2016,” he said. “The prices in the secondary housing market declined by 13.79 percent, rental housing market - by 17.04 percent, land market - by 1.23 percent for the year.”
“The prices in the commercial property market decreased by 21.31 percent, the primary housing market and rental commercial property market decreased by 13.79 percent and 17.68 percent in November 2017 compared to November 2016.”
Ibrahimov went on to say that he expects prices to be stable in 2018.
“Though by the second half of 2018, prices are expected to grow by 3-6 percent,” he noted.
Further, answering the question on preferences of foreigners and the local population when choosing accommodation, the expert said that they differ.
“Foreigners, mostly, come here to work, and they try to buy or rent an apartment near their work, that is, close to the center, while the local population mainly buys apartments on the outskirts,” Ibrahimov added.
In conclusion the expert stressed that it is more expedient to invest in 1-2 room apartments, since such apartments can be easily rented out and give a stable income.
Today, the share of the construction sector in Azerbaijan’s GDP amounts to about 10 percent.
The government plans to achieve a GDP growth by 249 million manats ($146.47 million) until 2020, through the implementation of measures envisaged in the Strategic Road Map for the development of housing provision at a reasonable price.
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