Global financial crisis slightly impacts on sales in Azerbaijani real estate market

Business Materials 17 February 2009 19:54 (UTC +04:00)

Azerbaijan, Baku, Feb. 17 / Trend , U.Ismayilova/  

Impact of the global financial crisis has been felt primarily in country's construction sector but has not affected real estate purchase and sale, Azerbaijan Realtors Association Vafadar Akhundov said on Feb. 17.

"Activities in the Baku real estate market increased by 20-30 percent in December," said Akhundov.

Supply has significantly increased in the market, but demand fell by 30-40 percent, he said.

Activities in the flats market have increased by 15-20 percent, because many buyers had sold their flats before the crisis. They are renting housing, waiting for further fall in prices. That means withdrawal of investments in the market, said Akhundov.

Rental of commercial properties decreased by 30 percent.

Real estate prices in the country are now at the level of December 2008. Decline has stopped, he said.

"I think a crisis-caused significant fall in prices, like in European countries and the U.S., will not occur in Azerbaijan. Real estate market operations in Azerbaijan are not so closely related to banking operations as in those countries," said Akhundov.

MBA Group, real estate companies New Europe and Baki Emlak are founders of the Azerbaijan Realtors Association of. In October 2008, the Association was registered at the Justice Ministry.

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