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Rental properties price to increase by 6 percent

5 August 2015 12:32 (UTC+04:00)
Rental properties price to increase by 6 percent

By Vusala Abbasova

It's been a dynamic year for the housing market in Azerbaijan. It started when the unstable global situation created by a fall in oil prices, Western sanctions against Russia, and the appreciation of the dollar, begin to affect the property market of the CIS countries, including Azerbaijan.

Azerbaijan could not escape the effects of fluctuations in the global markets, as the cost of the Azerbaijani manat is determined by cash flows from oil and gas exports, which makes up about 92 percent of Azerbaijan’s export earnings.

The depreciation of the national currency by roughly 34 percent against hard currencies has been met with concerns in the country's real estate market.

Real estate expert Nusret Ibrahimov predicted a further rise in prices for rental properties by 6 percent since August of 2015, according to his interview with Trend on August 3.

He claims that the market price for rental properties has seen an increase by an average of about 10 percent per year in the country – 12 percent in 2014 and by 10 percent in 2013.

But, the current stagnation in the property prices has significantly impacted the real estate market, and therefore the price for leased housing is expected increase by 6 percent.

He also mentioned that the most popular rental properties in Baku are apartments located near subway stations and universities.

"The apartments, located near Baku State University, Azerbaijan State Economic University, Azerbaijan Technical University and others, are the most attractive for rent," added Ibrahimov.

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