Baku Realtor Companies Shut Down Because of Absence of Demand in Housing Market
Azerbaijan, Baku, November 13/ Trend , corr U. Ismayilova/ "A number of realtor companies in Baku shut down because of a total absence of demand for housing," Faiq Ibrahimov, expert at MBA Consulting Company said.
"The real estate market has never experienced such standstill before," Ibrahimov said.
"There was not even any preview of real estate over the last week and we receive only two or three calls offering real estate," he said.
"The last deal on sale and purchase of real estate was signed in October," Ibrahimov said.
This situation is mainly attributable to consumer's expecting extra fall in housing prices, but sellers cut prices not more than 5%. If earlier one-bedroom flat could be sold for 35 to 40 days, this term has increased by five times now, expert noted.
Realtors say the housing prices will fall by additional 3%-5% in a couple of weeks. If there are real purchasers, the sellers are ready to lower the price. But construction companies do not want to lower prices of newly-built buildings whereas sellers of flats in the newly-built buildings in the secondary market are ready to yield.
Ibrahimov said 5,600 flats were supplied to the real estate market of Baku in October. The supply rose by 30%-35%, but demand fell by 15%-20%.
"Current situation in real estate market of the country which is attributable to financial crisis, decline in consumer and mortgage crediting, will last until the end of the year," Ibrahimov added.
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