Softened terms of mortgage lending likely to push up prices on Azerbaijani real estate market

“The rise varies by market segments. The highest increase was fixed on the secondhand market and the lowest on the rental market,” he added.

He said undesired accidents in construction slowed down the market activeness in August and the trend is on at present. He added that there was a 22% rise in prices of building materials during the past period and the cost of construction has risen in the country.

Experts predict relatively steady prices for the first half of 2008.

Ibrahimov said that prices on the real estate market will rise insignificantly by late September, 2008 unless mortgage loan terms are softened.

The state-funded mortgage loans are available at 8% annually and commercial banks offer mortgage loans at 15% annually. The government is expected to cut mortgage loan rates next year.

/APA-Economics/