Experts: Real estate prices will drop 30 percent in Azerbaijan due to global crisis
Azerbaijan, Baku, Jan. 5 / Trend , U. Ismayilova/
Prices on the real estate
market in Azerbaijan will continue to fall in the first quarter of 2009 due to
the global financial crisis. They will reach their lowest level in
January-February, the MBA Group consulting company said.
"The market is expected to liven up by spring when prices and market activity will reach their lowest level," experts at the MBA Group said. The real estate market will experience stability until autumn. Market activity will gradually increase as investors begin to take advantage of the low prices on the market. Nonetheless, expensive facilities will continue to fall in price until summer. Real estate prices will be down an average of 20 percent less than at the end of 2008 and 30 percent less than past September.
The MBA Group says the
real estate market will become active again in September 2009. But if mortgage
lending is resumed, they note, these events may be accelerated and the market
may liven up within two months.
The difference between offered facilities and actual selling prices on the real estate market is 12-15 percent in Azerbaijan due to the crisis. Sellers are agreeing to 10-12-percent concessions in price, while buyers are trying to knock 15-20 percent off their purchase.
The market still has many sellers who are not willing to make any concessions. But the MBA Group believes even they will be forced to lower their prices on residential properties as early as the first few weeks of 2009.
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