Activity in Baku Property Market Reduces by Third – Expert

Business Materials 30 October 2007 13:44
Activity in   Baku Property Market Reduces by Third – Expert

Azerbaijan, Baku / Trend corr. U.Ismaylova / Activity in purchase and sale of property market reduced by 37.7% in Baku in September 2007. More than a third or 35.2% of sold property fell on dwelling facilities, Nusrat Ibrahimov, the executive director of the Participants of property public organization, said on 30 October.

The market of dwelling facilities in Baku after the collapse of the new constructed building caused by poor design and use of poor-quality concrete became stabilizing from the mid of September.

Gradual rise of activity is observed by unnatural increase of prices in the second property market which is concerned with, according to realtors, durability of old buildings.

According to Ibrahimov, poor activity in market is explained with high prices which surpass consumers' capabilities.

The average cost for 1 square metre in the first property market in Baku reduced by 0.2% or to $1,025.

"Foreign investments which became more active for recent years positively affected on activity of nonresidential property," Ibrahimov said.

The Estonian entrepreneurs demonstrated interest in investment into the Azerbaijani property market during their visit to Baku on 29 October.