Housing market sees price increase - Central Bank
By Aynur Jafarova
Prices in the housing market of Azerbaijan grew by 4.6 percent in the first half of 2013, a report of the Central Bank of Azerbaijan on the monetary policy in the first half-year of 2013.
In general, prices on the secondary housing market rose by 4.6 percent in January to June 2013 and on the primary market by 1.6 percent.
"The highest price increase was observed on the secondary housing market for the same type apartments (5.6 percent), while the primary market saw increase of prices for well-designed apartments (2.9 percent)," the report said.
In this period, rent pay for residential properties increased by 10.3 percent and for commercial properties by 1.6 percent.
"Continuation of the process of mortgage lending activity has had an impact on the real estate market, especially on the secondary housing market," the report said.
In this period, the volume of mortgage loans granted by banks totaled 61.2 million manat.
Recently an increase in prices was observed on the housing market of Azerbaijan since the beginning of the year.
Experts believe this increase is linked with decrease in supply against rise in demand. Simplified mortgage lending is also regarded as one of the reasons increasing prices on the market.
Director General of MBA Group consulting company Nusret Ibrahimov believes that housing prices will continue to increase in Baku.
"Over the first six months of this year, real estate prices in Baku rose by 5.34 percent, while housing prices increased by 15.4 percent. This growth will continue in the second half of the year, but at a relatively low rate. For example, according to the results of the year we expect a rise in the housing prices by 3-4 percent. In general the real estate prices will go up by 7-8 percent. Serious price increase is also expected in the commercial property market in the autumn months," Ibrahimov said earlier.
According to him, the activity on the real estate market began to stabilize in late 2010 and it has increased since then.
"There has been a tendency of increase in activity and prices on real estate market over the last three years. This tendency is still preserved," Ibrahimov said.
The official exchange rate on August 12 is 0.7844 AZN / USD.