Expert: Probability of activity recovery in Azerbaijani real estate market in first half of 2011 is low

Business Materials 14 January 2011 11:37 (UTC +04:00)

Azerbaijan, Baku, Jan.14 / Trend U. Ismayilova /

The Azerbaijani real estate market can be assessed as stable in 2010 compared to 2009, NGO Property Market Participants Executive Director Ramil Osmanov said in an interview with the Dasinmaz Emlak analytical magazine published by the State Property Committee.

"But despite this, as a result of 2010, one cannot consider figures on all market segments to be satisfactory," Osmanov said.

According to the director, a decline in prices was observed in nearly all of the segments of the market, and this process is still underway. However, compared to 2009, according to Osmanov, the decline in prices is of a relative character.

If the monthly decline hit 3.5 percent or 8.10 percent on average in 2009, these figures dropped to 0.1-1 percent in 2010. In some cases, an increase was even observed. In short, an uncertain trend was observed, Osmanov said.

According to the expert, the real estate market has already exited the crisis period and a tendency for relative growth is now being observed.

"In this regard, the probability of the real estate market's dynamic growth in the first half of 2011 is low," Osmanov said.

According to the expert, an increase in investments on the country's real estate market is expected in the second half of the year, as, according to estimates, 80 percent of the compensation granted to the public for the demolition of buildings to construct major infrastructure and energy projects is being invested in the real estate market.