Azernews.Az

Friday March 29 2024

Prices in real estate market remain stable

13 June 2016 13:38 (UTC+04:00)
Prices in real estate market remain stable

By Nigar Abbasova

Baku recorded stability in the real estate prices in May following a slight decrease in April, 2016.

The CEO of MBA Company and real estate expert, Nusret Ibrahimov, said that the prices have decreased by 0.11 percent in dollar terms while in manat terms they remained the same.

No change in manat terms indicates market stabilization, he added.

“Prices in the primary housing market at the average have decreased by 1.04 percent in manat terms while in dollar terms they have increased by 0.51 percent. Prices in the secondary housing have increased by 1.23 percent in manat terms, while the rate of increase in dollar terms was 1.77 percent” he said.

Prices of plots of land have increased at the average of 1.18 percent in manat terms and 1.72 percent in dollar terms.

The most considerable decrease of prices has been registered in the market of commercial property, where the level of decrease in manat terms was 2.15 percent while in dollar terms it amounted to 1.62 percent.

Following several months of decrease, the prices in the market of accommodation leasing has also become stable. The prices in manat terms have increased by 1.55 percent while the increase in dollar terms was at the level of 2.1 percent. The lease of commercial objects in May has decreased at the average of 9.39 percent.

Prices in real estate market have decreased by 3 percent compared to the beginning of the year. The expert underlined that the market is expected to return its positions by late 2016.

Previously Ibrahimov mentioned that the recent increase in oil prices has slightly influenced stabilization of prices in real estate market, but it is unable to influence drastically the market due to the fact that changes in oil prices are insignificant.

He also added that there is no direct relation between oil and real estate prices but it still may influence prices in real estate market by means of a number of factors which are “black gold” dependent. These factors include money stock, exchange rate, GDP growth rates, employment rate and inflation.

--

Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

Follow us on Twitter @AzerNewsAz

Loading...
Latest See more