Real Estate Market Considerably Reduces in Baku

Business Materials 18 August 2008 20:17 (UTC +04:00)

Azerbaijan, Baku, 18 August / Trend corr. U.Ismayilova / Activity of the Baku real estate market reduced by 18% within a year, Nusrat Ibrahimov, the general director of MBA consulting company, said.

"Such considerable reduction of activity is connected with collapse of the building in Baku in August 2007," Ibrahimov said on 18 August.

In August 2007, 16-stored building collapsed in one of central streets of Baku and 25 people died in the incident.  Experts, who worked at the place of incident, said that the collapse took place for the lack of workers' professionalism and use of law-quality of construction materials. After the collapse of the building, activity of the Baku real estate market dramatically reduced by 34%. Gradual resumption of the market began in January 2008.

According to the expert, purchase and sale of real estate reduced  by 6 or 7% within a year and offers at the market reduced by 26% within this period.

"Since summer of 2007, price rise has amounted to 20%, as it was forecasted at the beginning of 2008," Ibrahimov said.

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