Real estate prices records decrease in 2016

By Azernews

By Nigar Abbasova

2016 recorded slight, but periodic decreases in the real estate market of Azerbaijan. The early months of the year saw more dynamic decreases, but later the trend lost its strength, said real estate expert Ramil Osmanli.

“A 3-5 percent fall was recorded in the first months of 2016, while stability was observed in the summer months. In the end of the year, the market once gain observed decrease. In tote, price decreases in the secondary market amounted to nearly 22 percent,” he told Trend.

As for the prices in the primary housing market, he said that it faced a reverse situation and prices increased.

 The expert mentioned that activity in both markets was very low. “A decrease of almost 30 percent was fixed in sale and purchase operations,” he added.

Commenting on possible effects of the construction of social houses on prices, Osmanli said that the process will not have an influence on the market.  

“I do not agree that the construction of social houses will have some effect on the market. The number of social houses is limited. Besides, such houses are meant for certain category of the population. Also, such houses may not be subjected to buying and selling operations within 3 years after acquisition,” he clarified.

The expert mentioned that it is too early to speak about price forecasts for this year. “The real estate market is highly dependent on macroeconomic indices of the country.  Therefore, increase in revenues of the country as well as stabilization in the exchange rate of the national currency is needed to provide changes”.

The average apartment cost per square meter in Baku city centre currently amounts to approximately 2,500.00 manats ($1,409.09). Prices outside of centre are 1,065.68 manats (600.654 in dollar equivalent).