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Real estate market prices to grow in 2018

11 January 2018 13:10 (UTC+04:00)
Real estate market prices to grow in 2018

By Aygul Salmanova

Last year, the real estate market of Azerbaijan had a growth trend in comparison with previous years, which will continue in the first quarters of 2018, the general director of the consulting company MBA Group, an expert in real estate Nusret Ibrahimov told Day.az.

The estimates of the economist show that there was an increase in activity of the real estate market in the previous year, prices fell by 3.46 percent.

“Compared with the previous years 2015-2016 this is a positive indicator, which shows stabilization of the real estate market due to the restoration of activity in the banking sector, the issuance of loans on the mortgage line, as well as progress in the construction sector. There is a demolition of old and construction of new houses in this segment, which on the whole positively affects the state of the real estate market. In 2017, the housing market experienced a relative decline in prices, while in the car market the prices rose by more than 12 percent,” said the expert, explaining that this was caused by the growth of customs duties on the import of cars from abroad.

In his opinion, the price increase for both apartments and cars will continue in 2018. In the automobile market this will be especially clear in the first quarter of this year, as the proportion of cars entering the market will increase as they enter the country, which will ultimately affect the average market price as a whole.

Ibrahimov also noted that favorable conditions of mortgage lending to housing will increase the purchasing power of the country’s population.

“As for the housing segment, this year the rise in prices for this type of property will again affect the activation of mortgage lending volumes, developments in the banking sector. The growth of money supply in this segment of the market will reach 4 percent this year,” he said.

Today, the share of the construction sector in Azerbaijan’s GDP amounts to about 10 percent.

The government plans to achieve a GDP growth by 249 million manats ($146.47 million) until 2020, through the implementation of measures envisaged in the Strategic Road Map for the development of housing provision at a reasonable price.

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