Real estate prices may decrease soon
T he prices for apartments are expected to decline by 5-10 percent in Azerbaijan in the first half of 2019, director of Azerbaijan’s Koneko Group appraisal company Vugar Oruj told Trend.
"As a result of the implementation of social housing construction projects, we see an increase in supply in the market. Thus, supply is expected to increase in 2019, which will lead to low prices in the Azerbaijani real estate market," he said.
Presently, few deals are struck in the Azerbaijani real estate market but there is certain revival, Oruj said.
"Sellers cannot sell real estate in the market in a short period of time. We see such facts that after a certain period of time, there is a decline in real estate prices. This shows that the owners cannot quickly sell real estate in the market and are forced reduce the initial price," he said.
Oruj also added that real estate prices are not expected to increase sharply.
"Some real estate owners consider property as investments and they have expectations from these investments," he said.
"In this regard, they refuse to reduce property prices, even though they cannot sell it at the price they have set. At the same time, among the owners of the property put up for sale, there are people who want to sell it as soon as possible. In this case, if they fail to sell apartments as soon as possible, then we expect them to reduce prices," he added.
Oruj said that the number of citizens purchasing housing is expected to increase in 2019 compared to the previous years.
The price indicator on the real estate market of Baku in October 2018 increased by 0.14 percent compared with the figure at the end of September, general director of consulting company MBA Group Nusret Ibrahimov said earlier.
Prices in the primary housing market for October increased by 3.12 percent up to 1,224 manats per square meter, in the secondary market - by 2.57 percent up to 1,698 manats,” he said.
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.