Azerbaijan, Baku, Dec. 28 /Trend, U.Ismaiylova/
2010 was a year of stabilization for the real estate market in Azerbaijan, which began from the end of 2009 and deepened in the current year, CEO of MBA Group consulting company, expert Nusret Ibrahimov said.
"The period of stabilization of the Azerbaijani real estate market will complete in the first half of 2011," said Ibrahimov.
In general, the real estate market in Azerbaijan in 2010 was inclined to lower prices, but along with this, the rate of decline in prices reduced by two times compared to 2009. One of the main reasons for the stabilization of the real estate market was revitalization of mortgage lending in the country.
If in 2009, the prices fell by 13 percent, in 2010 declines were 6.7 percent, said Ibrahimov.
If to compare market segments, the worst situation was observed in the market of commercial facilities - prices reduced by 12 percent, the best situation was recorded in the land market (1.8 -2 percent). Minimum price decline in the land market is linked with the fact that in 2009, this segment dropped by 20 percent. Price reduction was also observed in the residential buildings. Thus, the prices in the primary housing market in 2010 fell by 4.8 percent, the secondary - 6.6 percent. A significant decline in prices was also observed for the rental of commercial facilities - 13 percent and rental apartments - 12 percent, Ibrahimov said.
Touching upon the activity of the real estate market in the country, Ibrahimov said that the market began to intensify in the second half of 2010. In general, the increase in activity was observed at low-cost apartments ($70,000). There were problems with the sale of expensive apartments in the secondary housing market, while to sell expensive houses in the primary market was easier.
"Purchasing capacity in the real estate market of the country grew by 10-12 percent compared to 2009," said Ibrahimov.
According to him, the situation in the real estate market in Azerbaijan will improve in 2011, since money supply in the market will increases, as well as the funding of projects both by budget and non-budgetary organizations will increase," said Ibrahimov.
The expert believes that the prices will continue to decline by 2-4 percent in the first half of 2011, while can already rise by 5-6 percent in the second half of the year.