Azerbaijan’s real estate market grows by 12 percent
Azerbaijan, Baku, Feb. 25 / Trend U.Ismayilova /
The activity of the real estate market in Baku increased by about 12 percent since early 2011 compared to the same period last year, MBA Group CEO Nusret Ibrahimov said.
"The relative revitalization of the market is observed mainly due to growth in mortgage lending, resulting in increased activity, in particular, on deals with low-cost flats," Ibrahimov said.
He said the primary market partly activated in January-February (interest in new buildings increased).
"Those who want to purchase housing in recent years have preferred not to wait for further changes in market prices and buy real estate objects. Revitalization is also associated with population's adaptation to the situation," Ibrahimov said.
Ibrahimov believes improvement of the situation in global financial markets is another factor influencing the revival of the country's real estate market.
Regarding the price changes, Ibrahimov said they still tend to fall than to rise.
"In fact, prices are not falling, but tend to decrease. Today, the prices in the market can be considered as stable," he said.
Ibrahimov said it is early to speak about the rise in prices. It is unrealistic to wait for a rise in prices in the first half, and in the second half recovery of lost position is expected.
"A serious rise in prices on the real estate market of Azerbaijan is not expected, as current prices are still higher than the real purchasing capacity and supply still exceeds actual demand," Ibrahimov said.
Analyzing the situation of the parties in the real estate market, Ibrahimov said, appraisers are also involved in this process with the growth of mortgage and bank lending, so their position can be assumed at a good level. Demand for realtors (operations of purchase and sale of property) grew by 10-12 percent compared to the same period last year.