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Real estate prices continue to fall

14 January 2016 13:42 (UTC+04:00)
Real estate prices continue to fall

By Nigar Orujova

Residents of Baku are closely observing the changes in the real estate market, as property prices are falling at a faster rate, which makes this sector profitable for investment making.

Average prices for shell-and-core apartment in the primary real estate market of Baku decreased from $ 968/sqm to $958/sqm in December 2015, which is 1.03 percent less than the figure for November 2015.

The monthly report of the MBA Group consulting company shows that 20.8 percent of the apartments offered in the primary market is a cheap accommodation, the price of which is less than $700/sqm.

Over half of the proposals in the total portfolio of the offerings – 50.3 percent – accounted for apartments at an average price of $700-1,000/sqm. Apartments at the price of $1,000-1,300/sqm make up 12.7 percent of the total portfolio.

The remaining 16.2 percent are luxury apartments at a price above $1,300/sqm. In these segments, the average market price is $609/sqm, $832/sqm, $1,091/sqm and $1,687/sqm, respectively.

In December, Nasimi, Khatai and Yasamal districts have offered absolute majority of newly built apartments, which account for 70.6 percent.

The highest price per square meter in the primary market was offered for four-room 218 sqm apartment in Nasami district – $2,800/sqm, the lowest for 58 sqm one room apartment in Zabrat settlement of Sabunchi district – $400/sqm.

During the month the decline in prices recorded in Absheron, Binagadi, Nizami, Narimanov, Sabunchi, Sabail and Khatai districts of Baku, the relative increase in prices were noted in Surakhani, Nasimi, Yasamal and Sabunchi districts.

Apartment at below average cost of $958/sqm reached 65.9 percent of the total portfolio of offerings.

Prices in Baku’s secondary housing market also dropped. The average cost per square meter in the secondary housing market of Baku fell by 0.43 percent both in dollar and manat terms in December 2015 compared to November, amounting to $1,605, according to MBA Group company.

In December, the largest part of the sales portfolio in the secondary market of Baku was occupied by apartments with $1,500 cost per square meter, with average price in $1,182/sqm. Apartments in the range of $1,500-$2,000/sqm accounted for 32 percent of the total sales. The rest of the portfolio fell on the share of apartments, where the price per square meter was more than $2,000.

During the reporting period, the number of proposals in the secondary market of the capital increased by 9.9 percent.

Most housing was put up for sale in Nasimi, Narimanov, Khatai and Yasamal districts, which accounted for 68.4 percent of the total number of offerings on the market. Nasimi, Yasamal and Narimanov districts became the most attractive districts of Baku in December, according to the index of activity.

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Nigar Orujova is AzerNews’ staff journalist. Follow her on Twitter: @o_nigar

Follow us on Twitter: @AzerNewsAz

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