Significant price changes expected in real estate market
By Nigar Abbasova
The real estate market of Azerbaijan may soon record significant changes in prices.
Experts of the AS Group Investment Company believe that prices of economy-class property will decrease in the months to come, while prices in elite and premium segments will remain stable, with the tendency of growth.
The group said that the prices in the secondary market averaged 1,400 manats ($ 825.8) per square meter, while prices in the primary market stood at nearly 1,318 manats ($ 777.9) in October 2016.
The experts mentioned that active construction process is currently underway in Baku, Khirdalan and Masazir.
Some 41 percent of all offers in the secondary market fell to a share of apartments in new buildings worth some 70,000-120,000 manats ($ 41,288 – 70,779 ). The price for an apartment in Soviet-style buildings averaged at 50,000-90,000 manats ($ 29,491 – 53,084).
The highest price per square meter in new buildings (some 1,516 manats ( $ 894.1)) fell to a share of 5-room apartments, while the highest figure in Soviet-style buildings (1,584 manats ( $ 934.2 )) accounted for single-room apartments.
The bottom line price per square meter in new buildings (1, 341 manats ( $ 790.9 )) was recorded in two room apartments, while the lowest price per square meter in Soviet-style buildings was fixed in 5-room apartments.
The offer portfolio of the market subjected to changes as compared to 2015. Nearly 61 percent of all offers fell to a share of Soviet-style buildings, while new buildings accounted for 39 percent in 2015. In 2016, the share of new and Soviet buildings stood at 57 and 43 percent respectively.
The secondary market housing is mainly purchased by customers who cannot afford apartments in new buildings. The prices are determined by location, quality of buildings and many other factors.
Meanwhile, construction of social houses is expected to be launched in the country soon. The project is expected to provide young and low-income families with renovated apartments with all conveniences and strengthen social protection of the population.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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