Azernews.Az

By Amina Nazarli

The share of social housing, being realized under the subsidized housing system, will not exceed 10 percent in the real estate market of Azerbaijan.

Chairman of the State Housing Construction Agency (MIDA) Samir Nuriyev announced about this while addressing a meeting with members of the "Caspian European Club" ("Caspian Business Club") and "Caspian American Club" on March 1.

Nuriyev stressed that social housing system will not have a negative effect on the market, adding that instead it will strengthen competitiveness in the construction sector.

Subsidized housing system, which will be available since May 2017, is expected to become the best solution for the citizens with low or moderate incomes. Additionally, after this process gets a massive scale, it will have a positive impact on the sectors of construction and production of building materials, eventually contributing to overall economic growth.

Nuriyev went on to say that the cost of social housing to be built in Baku will be at least 20-25 percent cheaper than the average market value. He emphasized that the final cost of housing will be known upon completion of the construction, but it is possible that social housing will be cheaper than expected.

“We do not have specific criteria for determining the cost of housing, it depends on the area of a house and other criteria,” he added.

The first residential complex, which is under construction in Yasamal settlement, will have more than 1,800 apartments which will be provided on concessional terms primarily to the families of martyrs, war veterans, young professionals, teachers, scientists, soldiers, citizens of this category. Payment terms will be concessional. People will move into new apartments on long-term payment conditions.

The inner quadrature of one room apartments will range from 30 to 35 square meters, two-room apartments – 50-60 square meters, three-room apartments – 65-75 square meters. Some 60 percent of apartments will fall to a share of two-room apartments, while one-room apartments will account for 16 percent.

The sum of monthly payment for one-room apartments will range from 130-140 manats ($ 70.9 – 76.4), while the payment for three-room apartments will stand at 330-350 manats ($ 180.2-191.1).

Nuriyev further added the criteria to determine who will be able to purchase social housing will be the same as for the preferential mortgage issued through the Azerbaijan Mortgage Fund.

"While issuing, priority will be given to young families. But all, who belong to the privileged categories, will be able to purchase houses," Nuriyev said.

Another distinctive feature of social housing is the distribution of plots for residential buildings and yards. Under the construction law, 40 percent of the residential complex should be used for the construction of residential houses and 60 percent for courtyards.

“However, for example, in the construction of a residential complex in the Yasamal district only 25 percent of the site was provided for residential housing. The remaining 75 percent are reserved for parks and other facilities that provide comfort to residents of the complex. We want to create a certain standard of what a residential complex should look like,” Nuriyev explained.

The complex will consist of 29 multi-apartment buildings. A number of social facilities will be built in the complex, including a 240-seat kindergarten and a 960-seat secondary school. The opening of this first project is scheduled for 2018.

The second project on construction of social houses will also be implemented in the capital city. Within the second project, houses are planned to be constructed in Surakhani district, near Hovsan settlement and cover an area of some 20 hectares.

Applying for social housing is expected to start in the short run. Population will be provided with all necessary information about requirements for acquisition of apartments on easy terms.

Nuriyev said that the third project can also be realized in Baku due to a greater need for social housing in the capital.

He also said that the MIDA will also participate in construction premium-class projects.

“This is a widespread practice in the world. For example, in Turkey, the relevant government agencies buy land plots for premium housing, implements these projects in cooperation with the private sector, and the profit goes to the construction of social housing,” Nuriyev explained.

The head of the agency said that this is one of the two models, which the agency will adhere.

“The first model stipulates allocation of the site by the government, establishment of communications and engineering systems, road and transport infrastructure, as well as the financing of social projects. The second model involves a partnership between the public and private sectors. At the same time, this model will also cover social projects, what means that we are ready to cooperate with the private sector even in social projects. At the same time, we can also carry out commercial activities. Profits from this will be used for social projects, reducing the cost of social buildings and increase of their numbers,” he said.

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Amina Nazarli is AzerNews’ staff journalist, follow her on Twitter: @amina_nazarli

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