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Secondary housing market cheapens by 0.7 percent

Business Materials 24 August 2010 17:23 (UTC +04:00)

Azerbaijan, Baku, Aug. 24 / Trend A.Akhundov /

The dynamics of bargaining declined by 2.5 percent in the Baku secondary real estate market in July, the Property Market Participants public organization.

The share of new buildings in the housing market continues to grow in Baku, and in July this figure was 60.9 percent. There was a relative increase in the share of new buildings in the secondary housing market - at 0.2 percent compared to June.

Despite the 0.2-percent decline in proposals on the market, the average price fell by 0.7 percent. Under the influence of mortgage lending in this segment of the market the liquidity remained stable, but the risk is still high. According to studies, on the secondary market price index declined by 0.7 percent compared to the cost of apartments. Prices index on the secondary market decreased by 1.5 points.

As a result of decrease of proposals by 0.2 percent, the number of apartments proposed to the market was 6,753. Share of Yasamal, Nasimi, Narimanov and Khatai districts in the portfolio of this segment was 80 percent.

In July, price increase was not observed in any districts of Baku, and the most significant decline in prices was observed in Yasamal district of Baku - at 0.7 percent. Average price per square meter of secondary housing was $1,102, and the share of apartments proposed to the market below the average price amounted to 58.6 percent in the total portfolio of the market.

The average figure for an apartment was amounted to 2.54, and the average price of one room was $45,621, the average price for an apartment - $118,740.

Khatai, Yasamal, Binagadi and Narimanov were the most active areas for the activity coefficient, since these districts were the most attractive in terms of the mortgage.

During last month number of three, four and five-room apartments decreased. The most significant decline in proposals was observed in four-room apartments - at 1.3 percent. Proposals on two-room apartments increased by 0.2 percent.

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