Fall in Prices in Baku’s First Housing Market
Azerbaijan, Baku, November 19/ Trend , corr U. Ismayilova/ In October prices of 1 sq m of housing increased by 1.2% to $1,100 on average, Nusrat Ibrahimov, director general of MBA Group consulting company said.
"In index indicator prices in first housing market fell. The fall in prices has a bad impact on increase in supply in the market because of decline in demand" Ibrahimov said.
In October, the prices in first housing market dropped by 3.1% and 0.1% on average.
The number of buildings under construction in the first housing market made up 541. The decline in the first housing market of Azerbaijan began in summer of 2007 following suspension of mortgage lending by Mortgage Fund at the National Bank. At that time mortgage lending by local banks became popular.
The global financial crisis which made many banks to suspend mortgage lending because of absence of funds caused decline in the housing market.
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