TODAY.AZ / Business

Demand for Soviet apartments not to fall

25 May 2015 [16:40] - TODAY.AZ

/By AzerNews/

By Amina Nazarli

Recent developments occurring in the country led some people to confusion about the situation of the real estate market.

The devaluation of the manat and the recent fire which occurred on a 16-storey building created some issue in people’s minds when it comes to the demand for apartments of the Soviet period and their overall marketability.

Nusret Ibrahimov, CEO of the “MBA Group” consulting company said there is no reason to worry as the fire incident will not weight on the real estate market. “The fire will not lead to a decrease in demands for Soviet era buildings,” he told Trend on May 25.

He said that due to their durability and low price these buildings remain in high demand.

The fire which killed 15 people was caused by the use of low grade cladding material.

In this regard he went ahead saying that demand may drop for those buildings with bad quality plastic paneling that cover the exterior.

However, Ibrahimov also added that considering the fact that these materials are now widely being replaced by new -- high-quality ones, “I think that a decline in demand is not expected.”

Flats costing up to $2,000 per square meter made the most part of all sales [81.5 percent] for Baku' secondary real estate market in April, according to the “MBA Group”.

Flats at a value of $2,000-$2,500 per square meter stood at 13.75 percent. The remaining part [4.75 percent] fell on the share of apartments, where prices per square meter stand at over $2,500.

The number of proposals on Baku’s secondary market in April 2015 totaled 1,726, a drop by 18.7 percent from last year’s figure and less by 1.47 percent from March 2015.

The most offers in April came from Baku’s Yasamal, Nasimi , Narimanov and Binagadi regions, which stood at 66.8 percent of the total demand.

In April this year, the average cost per square meter on Baku’s secondary housing market compared to March fell by 6.12 percent and amounted to 1,770 manat ($1682.92).

URL: http://www.today.az/news/business/140976.html

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