Azerbaijan, Baku, July 5 / Trend U. Ismayilova /
The current prices for apartments on Baku housing market are illogical. They are not economically justified, MP, the Parliamentary Standing Committee on Economic Policy member Vahid Akhmedov said in an interview with 'Participants of property market' public organization's journal.
"It is necessary to investigate the situation to identify the difference between the market price of housing and the cost to discuss the issue in the parliament", Akhmedov said.
He said that prices for apartments in Baku should be significantly reduced. The construction companies now have to think about the decline in housing prices, though, based on the situation, we can say that there are facts hampering the reduction in price, since today's prices on the market are not economically justified.
Akhmedov believes that housing prices in Baku should be reduced by at least 20-30 percent, although it is difficult to regulate prices in the current stagnation on the market.
MP proposes to bring prices in line with the principle of fair prices on the market, and determine public policy for the development of the construction sector.
"Unfortunately, today the government has no program to develop housing. The issue was raised several times in the Parliament. But there are no results ", Akhmedov said.
MP also noted that the level of the proposals in Azerbaijan does not correspond to the demand. The country is several times behind the majority of CIS countries on the housing area per person. Stagnation on the housing market led Baku to reduce the number of transactions on sale of facilities. The main problem is that housing prices in Baku are artificially increased recently. It was connected with a sharp increase in oil revenues and rising levels of liquidity on the market of real estate. As a result, housing prices in Baku surpassed several European countries.
"The initial price per square meter of housing can not be kept at more than 500 manat for a long time in a country where average monthly wage is 265 manat, " Akhmedov said.