Baku's secondary market drops

Business Materials 24 May 2011 10:31 (UTC +04:00)

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

Average prices on the secondary housing market in Baku in April dropped by 0.7 percent to $1,000 per square meter compared to $1,007 in March, the NGO Property Market Participants said.

Processes occurring on the market negatively affected the pace of housing construction resulting in limited rehabilitation opportunities, and turnover of new buildings.

"This, in turn, led to lower prices of new buildings entering the secondary market. In April, the volume of proposals on the secondary housing market declined by 1.1 percent compared to March," the report reads.

An increase in prices was observed only in the Garadag district of Baku this month, the report said.

The proportion of secondary residences proposed for the market at a price lower than the average, amounted to 57.6 percent.

The average room rate on the secondary market in April was 2.64, with the average price of each room at $43,513 and house - $ 111,314.

The price index also fell by 1.3 points to 183.7. Proposals on the market increased by 0.4 percent. Roughly 6,121 flats were proposed on the market.

The dynamics of the purchase and sale transactions decreased by 0.5 percent.

The most attractive areas in the secondary housing market of Baku were Khatai and Yasamal. In general, the bulk of operations in the mortgage process fell to these districts.

The share of Yasamal, Nasimi, Narimanov and Khatai districts in the proposal portfolio was 79.4 percent. The formation of the portfolio is linked with the entry of new buildings on to the market.