Real estate prices down 15%
Prices in Azerbaijan`s real estate market fell some
15% from January-April, the head of the state body in charge of
registering real estate told reporters.
Arif Garashov dismissed circulating reports about a major reduction in prices. "The decrease in real estate prices is not so considerable in strategic locations."
Garashov linked stagnation in the domestic real estate market with the summer season and said the prices are expected to rise in the fall.
The service chief said that the allocation of funds to banks for further mortgage lending and the government`s planned measures to reduce interest on loans would boost activity in the immovables market.
In 2007, the government suspended the allocation of mortgage credits across the country.
Local experts have estimated that prices on secondary apartments in and around Baku dropped by 10.4% in April. Also, the drop in prices for property in historical and architectural buildings was 12.7%, while that in the Narimanov district - 10%, in micro-districts 10.3%, and in the Yasamal district 10.2%.
One-room apartments have become cheaper by up to 8.3%, while two-room flats fell by 10.5% and three-room apartments by 10.9%.
The period needed to sell apartments has increased by five to seven days to reach an average of 68-75 days.
As for other large cities in Azerbaijan, the drop in Ganja was 10.6%, in Sumgayit 9.2% and in Mingachevir 10.1%.
Experts link the fall in prices to the global recession, low purchasing power, problems with loan allocations as well as some psychological factors. Prices are expected to remain stable or drop slightly further in the coming months.
Arif Garashov dismissed circulating reports about a major reduction in prices. "The decrease in real estate prices is not so considerable in strategic locations."
Garashov linked stagnation in the domestic real estate market with the summer season and said the prices are expected to rise in the fall.
The service chief said that the allocation of funds to banks for further mortgage lending and the government`s planned measures to reduce interest on loans would boost activity in the immovables market.
In 2007, the government suspended the allocation of mortgage credits across the country.
Local experts have estimated that prices on secondary apartments in and around Baku dropped by 10.4% in April. Also, the drop in prices for property in historical and architectural buildings was 12.7%, while that in the Narimanov district - 10%, in micro-districts 10.3%, and in the Yasamal district 10.2%.
One-room apartments have become cheaper by up to 8.3%, while two-room flats fell by 10.5% and three-room apartments by 10.9%.
The period needed to sell apartments has increased by five to seven days to reach an average of 68-75 days.
As for other large cities in Azerbaijan, the drop in Ganja was 10.6%, in Sumgayit 9.2% and in Mingachevir 10.1%.
Experts link the fall in prices to the global recession, low purchasing power, problems with loan allocations as well as some psychological factors. Prices are expected to remain stable or drop slightly further in the coming months.
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