Azerbaijan, Baku, Aug.20 / Trend U. Ismayilova /
The Azerbaijani real estate market may be quite attractive to foreign investors, who take occasion from lower prices in the market to increase their participation in it, the MBA Group consulting company Director General, Nusrat Ibrahimov, said.
[According to Azerbaijani law, except the land market, non-residents of the country can participate in the purchase of other types of property.]
The significant drop in prices in the real estate market, as well as weak activity may attract foreign investors willing to invest additional resources in the Azerbaijani real estate market, Ibrahimov said.
However, we have not received an appeal from the foreign investors on entrance to the market, Ibrahimov added.
On the backdrop of the global economic crisis, real estate markets of all countries look virtually attractive to participate in due to the significant decline in prices compared with the pre-crisis levels. But in many markets the bottom of the fall has not yet passed and real estate prices continue to decline. In addition, the prospects for recovery of the markets differs from country to country.
Regarding potential investors, favorites enters the real estate markets of countries that are least affected by the crisis, have a greater chance of quick recovery of their economies, the real estate market which has reached the bottom of the price fall, have strong fundamental reasons for the growth of the real estate market.
Regarding the rate of construction in the country, the expert said that at present the situation for small and medium-sized construction companies was difficult, because the rate of construction work declined by 10-12 percent since early 2009 and by 20-25 percent compared to the same period of 2008.
The activity of the Azerbaijani real estate market decreased by 5-6 percent for the first half of August.
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