Capital’s real estate market to further show growth

The prices on the real estate market continue to stabilize following the high price reduction rates observed on the market in 2015 and 2016.

The price index in the real estate market of Baku in February 2018 increased by 1.75 percent, Nusret Ibrahimov, director general of the MBA Group consulting company, real estate expert, told Trend.

During the month, the prices increased for primary housing and land areas, as well as rental of commercial properties, he said.

“Thus, prices in the primary housing market in February increased by 1.55 percent, in the land market - by 1.99 percent, and in the market for renting of commercial properties - by 1.83 percent. Meanwhile, the prices in the secondary housing market decreased by 2.13 percent, in the rental market - by 4.2 percent, and in the market of commercial properties - by 3.69 percent,” Ibrahimov said.

The expert noted that the prices in the real estate market increased by 3.22 percent since early 2018. According to him, growth is mainly linked with an increase in the cost of apartments in the primary housing market.

“So, prices in the primary housing market increased by 8.5 percent from the beginning of the year. The price growth in the land market hit 2.72 percent, in the market of commercial properties - 0.36 percent, and their lease - 4.75 percent, while prices in the secondary housing market decreased by 1.63 percent since early 2018, and prices in the rental market for residential premises have not changed since the beginning of the year,” the expert said.

In general, according to Ibrahimov, the real estate market is expected to grow by 3-4 percent in the first quarter of 2018.

In 2017, prices in the real estate market decreased by 3.46 percent. The prices in the secondary housing market declined by 3.54 percent, primary housing market – 7.75 percent, land market – 1.65 percent, commercial property market - 20.29 percent, rental commercial property market - 17.63 percent for the year. The prices increased by 13.85 percent in the rental housing market in 2017 compared to 2016.

Today, the share of the construction sector in Azerbaijan’s GDP amounts to about 10 percent. The government plans to achieve a GDP growth by 249 million manats ($146.47 million) until 2020, through the implementation of measures envisaged in the Strategic Road Map for the development of housing provision at a reasonable price.