Prices for secondary housing in Baku falls

By Azernews

By Amina Nazarli

Prices in the real estate market of Baku decreased by 0.59 percent in June 2017.

General Director of the “MBA Group” consulting company Nusret Ibrahimov told Trend that during the month, prices for land plots, commercial properties and rental of housing increased, while the cost of secondary and primary housing, rental of commercial facilities declined.

“Thus, prices in the primary and secondary housing market decreased by 5.12 percent and 9.45 percent, land plot prices - by 4.52 percent, prices for commercial properties by 19.91 percent, and rental prices for housing and commercial properties - by 14.76 and 19.91 percent respectively,” he said.

Since early 2017, the market as a whole has grown by 0.56 percent, although the indicators in some segments of the market showed a decline.

In June, the cost per square meter of secondary housing fell from 1,737 manat to 1,614 manat (by 7.24 percent), square meter of primary housing - from 1,452 to 1,432 manat (by 1.41 percent), commercial premises rent - from 13.77 manat to 13.57 manats per square meter.

Morover, the cost of a hundred square meters of land was 20,118 manat, which is 0.7 percent higher than the indicator of May (20,105 manats). The price of commercial objects per square meter increased by 4.89 percent (from 2 926 manats to 3,069 manats), and the cost of housing rent increased by 0.96 percent - from 8.83 manats to 8.92 manats per square meter.

The expert noted that compared to the same period of 2016, prices in the real estate market fell slightly (by 7.4 percent). During the year growth was observed in the market of primary and secondary housing and land market, and other segments of the market experienced a decrease.

Ibrahimov earlier said that in 2017, the real estate market could grow by 10 percent, which can contribute to the gradual adaptation of the population to the current situation and the restoration of the activities of the Azerbaijan Mortgage Fund (AMF).

Last year, prices in the real estate market of Baku in dollar terms decreased by 31.53 percent.