Azerbaijan experiencing deficit of affordable housing: market participant

Business Materials 27 July 2009 12:39 (UTC +04:00)

Azerbaijan, Baku, July 27 / Trend , U.Ismayilova/

The Azerbaijani market is experiencing a deficit of affordable housing which is in average condition, the President of the Baku Realtors Association, Vafadar Akhundov said on July 27.

"Despite the fact that market activity has increased by 50-60 percent due to mortgage lending being resumed, demand increased, and many potential customers cannot find a good home," Akhundov said.

Also active on the market are 'resellers', who face the problem of the affordable housing shortage too.

Akhundov said that the increased activity resulted in a slight increase in housing prices - about 6-7 percent.

"This is a slight increase, and one should not expect prices to be higher in the near future," said Akhundov.

A minimum of 170 million dollars is required to ensure full market activity, the President of the Association said.

"The Azerbaijani real estate market will be able to return to its previous state of activity only after a substantial amount of funds has been allocated to the market," said Akhundov.

The founders of the Baku Realtors Association are the company "MBA Group" and real estate companies "New Europe" and "Baki Emlak". In October 2008 the Association was registered at the Azerbaijani Justice Ministry. At present the association has 80 members. The association membership fee is 100 manat.

The Association's main tasks are to outline standards for the operation of real estate activities in Azerbaijan, to establish a center for specialized training, and to introduce a Realtors system of certification.

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