Average prices of one hundred sq.m of land increase in Baku

Business Materials 23 August 2010 20:51 (UTC +04:00)

Azerbaijan, Baku, August 23 /Trend, A.Akhundov/

For the first time in the past two years, an increase was recorded in average prices of one hundred square meters of land in Baku, NGO property market participants said.

The average price of one hundred square meters of land in July increased by 0.5 percent - up to $14,136 compared to the June index of $14,062.

The increase in prices was observed in second and third zones of the city. Land prices continue to decline in the first and fourth zones because of the excess of market price above the real price.

The experts of the organization say too high prices for land in the center of the city brought to the decline in demand in the first zone of the city and the lower prices.

Unlike June, in July, in the fourth zone, the reduction of prices gradually began to accept the relative character.

The excess price over the real value did 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 July was observed in Yasamal district - 0.6 percent. The relative increase in prices occurred in Garadagh district of Baku - 0.9 percent. The most active were Binagadi and Khatai districts on the land market last month. The most passive, as in previous months, was Nasimi district.

The most expensive plot in July 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 July, about 797.1 acres of land was proposed on the land market in Baku, of which 78 percent were vacant lots, the remainder - non-residential areas and older residential areas.