Time is ripe to purchase apartment in Baku
By Amina Nazarli
Houses in Azerbaijan’s capital Baku have become cheaper. Over
the last two-three months, prices in the housing market have
decreased by 1-1.5 percent, said Nusret Ibrahimov, the Director of
"MBA Group" consulting company.
However, the expert maintained that the situation is absolutely
different in land and commercial properties markets. Here, there
are no significant fluctuations in the prices.
“Last year, there was a 24-percent growth in the housing market, while in 2014 it constituted 14 percent. Such prices were too expensive for consumers. That’s why they put their focus on the land plot market,” he told Trend on December 25.
Ibrahimov said this is the main reason why about half of the population put their focus on this market. To this end, the market has shown a growing tendency.
The specialist thinks that the situations in Russia and Ukraine
have their impacts on the prices’ increase.
”Due to the economic deterioration in Russia and Ukraine, money
supplies from foreign countries to Azerbaijan have decreased. Last
year and in the first half of 2014, the amount of Russian
investments in the local real estate market made up six-ten
percent. However, in the last three-four months, the amount
decreased to almost zero,” he noted.
Ibrahimov claimed that the price decline in housing market will continue. But, he also added that in the second part of 2015 the market would be stable.
Earlier in November, Central Bank of Azerbaijan said that housing prices increased by 13.1 percent in January-September 2014.
During this period, prices in the secondary and primary markets rose by 13.1 and 11.6 percent respectively.
Rental price of housing increased by 11.9 percent, while commercial buildings - by 8.9 percent.
In January-September, the Azerbaijani Mortgage Fund (AMF) issued 78,6 million manats for the property purchase, it is less by 4.3 percent compared with last year.