Exposition term increases by 258 days on Baku's land market
Azerbaijan, Baku, July 23 / Trend I. Khalilova /
The average price of one hundred square meters of land in June reduced by 0.3 percent - up to $14,062 compared to the May index of $14,108, NGO property market participants said.
"The decline in prices was observed in all areas of the city. It is connected with excess of market prices over the real," a statement said.
The average price in the first zone reduced by 0.1 percent - up to $171,832 per one hundred square meters, the second - by 0,2 percent - up to $95,620, third - 0.6 percent - up to $18,540, and the fourth zone - one percent - up to $3,564.
The organization experts said that too high prices for land in the center of the city resulted in a decline in demand in the first and second zones of the city and lower prices.
Prices began to stabilize in June in the first and second zone as opposed to May.
The excess price over the real value did not not seriously affect the profitability of land, but had influence on increasing of the exposure period and reduction of liquidity.
Meanwhile, interest in this type of property is reduced due to the fact that the land still can not be the subject of pledge.
The most significant decline in prices in June was observed in Yasamal district - 0.7 percent. The relative increase in prices occurred in Hazar (Azizbayov) district of Baku - 0,3 percent due to the beginning of the summer season. The most active were Binagadi and Nizami districts on the land market last month. The most passive, as in previous months, was Nasimi district.
The most expensive plot in June was offered to the market in Nasimi district of Baku for $250,000 per one hundred square meters, the cheapest - in the Absheron area for $ 350 per hundred square meters.
In June, about 797.4 acres of land was proposed on the land market in Baku, of which 77.8 percent were vacant lots, the remainder - non-residential areas and older residential areas. Price index. in the land market reduced by 0.8 points and reached the level of 237.5.
The period of land exposure increased by 0.8 percent - up to 258 days compared to May. This situation is explained by changing demand and supply, as well as seasonal factors.