Intensification on second housing market in Azerbaijan
Azerbaijan, Baku, 2 July / Trend , U.Ismaylova /
The resumption of mortgage lending in Azerbaijan led to 10 percent increase in the price of the cheapest apartments in the second housing market, the general director of consulting company MBA Group Nusret Ibrahimov said on July 2.
Growth occurred from five to 10 percent depending on the location of the facility, said Ibragimov.
According to him, the price increases for low-cost apartments, since their cost corresponds to the maximum level of mortgage loans issued by the Azerbaijan Mortgage Fund (AMF) - 50,000 manats.
Activity in the second housing market after resumption of the mortgage has grown three times.
Ibragimov said that a sharp jump in the market will continue by early September, but in autumn the market will be stabilizing.
About 20 loans were issued in June, in the first month of the resumption of mortgage lending by Azerbaijan Mortgage Fund, the Fund said on July 1.
"Total funding amounts to about one million manat," the same source said.
Today, 544 people appealed to the Mortgage Fund to obtain ordinary mortgage lending and 44 people for preferential loans. The total amount of credits on received appeals is 26 million manat.
Rates on loans vary from 8 percent (according to standards of the fund) to 18-20 percent in commercial banks. Term is from 10 to 25 years. Agents of the fund are 17 banks. Maximal amount of loan obtained through the fund hits 50,000 manat for a term from 3 to 25 years.
Azerbaijani mortgage fund under the Azerbaijani Central Bank resumed loaning from June 1. It suspended granting of loans in summer 2007 because of lack of funds.
2005-2009 Public budget of Azerbaijan envisages 94 million manat for mortgage loans through the Mortgage Fund, of which 70 million manat has been distributed through banks today.
Roughly 14.5 million manat from state budget-2009 was allocated to finance social mortgage.
Official rate on July 2 is 0.8042 AZN/USD.
Do you have feedback? Contact our journalist at: [email protected]