Azerbaijan to allocate 150M manats on subsidized housing
By Sara Israfilbayova
The government plans to allocate 150 million manats ($88.23 million) in 2018 to meet the housing needs of the population and receive housing on preferential terms.
Thus, expenses in this direction in the state budget for the next year remain unchanged. In the updated budget for 2017, similar expenses were increased by 50 percent compared to the initial approved budget, up to 150 million manats ($88.23 million).
In accordance with the initial draft budget for 2018, for the housing needs of the population, preferential housing for citizens and social mortgage, it was planned to allocate 250 million manats ($147.05 million).
MIDA has launched registration of persons wishing to purchase subsidized housing started from May 30, 2017.
The monthly payment for the purchase of a three-room apartment in a mortgage will not exceed 300 manats ($176.5) and for a one-room apartment it will amount to 130-150 manats ($76.5-$88.2).
A preferential mortgage is issued only in the Azerbaijani manat and given to citizens of the country.
There are two types of product, including social [maximum period 30 years] and standard mortgage [maximum period 25 years], while the annual interest rate on services amounts to 4 and 8 percent respectively.
Mortgage is given only for an apartment or private house and its amount should not be more than 80 percent of the market price of the property. Mortgage payments cannot exceed 70 percent of borrower’s total monthly income.
Every family/person who is entitled to use social mortgage loans can use these concessions only once.
The main essence of preferential terms is that the cost of apartments will be lower than the average market value in the territory.
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