Azerbaijan, Baku, Feb. 22 / Trend U. Ismayilova /
Early 2011 is remembered with demand in the real estate market growing, in contrast to the situation in early 2010, Azerbaijani Realtors Association Executive Director Elnur Azadov said in an interview with Dashinmaz Emlak magazine published by the State Committee on Property Issues.
"The main reason for the demand increase is a gradual weakening of the crisis, rising oil prices on the world market and economic development of Azerbaijan, as well as the development of non-oil sector and business," Azadov said.
He said the country's real estate market does not expect major changes in the first half. However, due to the development of mortgage-lending programs, increase in demand for relatively cheap housing is inevitable that, in turn, will have some impact on the prices of such apartments. The housing market is currently experiencing increased demand for one- or two-room apartments in new buildings. That allows to predict a price increase for this type of housing by late 2011 that will also affect the value of other apartments.
A small amount of housing stock also affected the growth of demand, Azadov said. This increase is the result of natural population growth, urbanization, the influx of foreign nationals, purchases of homes by compatriots living abroad, and other processes. The number of permits issued for construction of new buildings in Baku dramatically reduced over the last two years, which will lead to higher prices for this accommodation.
He said now 25-30 percent of buildings in Baku were built in 1970-1990, which are mainly located in the Nizami and Khatai districts and in neighborhoods. According to Azadov, it is important to increase the scale of construction in order to ensure fair competition, and to increase the housing stock and the formation of the price balance.
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