Real es­tate prices may de­crease soon

Azer News - - Nation - By Narmina Mam­madova

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.

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