BAKU, Azerbaijan, January 31. Current apartment prices in Baku are at their peak; however, the real estate market faces a shortage of buyers, Azerbaijani property expert Elnur Farzaliyev told Trend.
He mentioned that if this situation continues, apartment prices may fall.
The expert noted that prices for apartments, which can currently be financed through mortgages, have significantly increased.
"Purchasing an apartment in Baku through preferential mortgage loans was advantageous five years ago. Today, the selling price of one-bedroom apartments in areas close to the city center exceeds 100,000 manat ($58,820)," explained Farzaliyev.
"The volumes of regular and preferential mortgage loans need to be increased. Today, it's difficult to buy a house for 100,000 manat on mortgage. It will be convenient only if private houses without title deeds are provided with documentation. There are private houses at low prices. However, these houses cannot be sold on credit due to the lack of title deeds," he said.
According to him, preferential mortgage loans are very beneficial for other regions but not for the capital.
"In general, these loans, issued on preferential terms, will have a positive impact on the real estate market, increasing the buyer base. However, individuals belonging to the preferential category are forced to invest additional funds in their allocated mortgages to purchase an apartment," emphasized Farzaliyev.
The Azerbaijan Mortgage and Credit Guarantee Fund has set limitations for issuing mortgage loans, including preferential mortgage loans, to participating banks to continue the mortgage lending process through 2024.
"Regular mortgage loan applications will be accepted beginning on February 2 at 11:00 (GMT +4). Additional information on accepting applications for preferential mortgage loans will be provided," the statement said.
Mortgage loan applications are accepted in real-time on the electronic government site (www.e-gov.az) using the "Electronic Mortgage and Credit Guarantee" system.
The Fund's official website provides information on how to receive mortgage loans at www.mcgf.gov.az/menu/46.
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