Commercial facilities slightly cheapen in Baku in May

Business Materials 2 July 2011 14:38 (UTC +04:00)

Azerbaijan, Baku, July 2 / Trend A.Akhundov /

The average cost of the property and the cost of rental housing used for commercial purposes decreased by 0.3 percent and 0.1 percent respectively on the market of non-residential facilities in Baku in May, the Property Market Participants public organization said.

Proposals on the market increased by 2.3 percent. The number of purchase and sale commercial property transactions increased by 3.6 percent in May.

Despite the processes occurring on the real estate market, this marks a stabilization of the risk level, which is linked with the strengthening of the coefficient of profitability in relation to
prices for rent.

According to the research, the price for the same period of 2010 decreased by 1.8 percent, but increased by 0.9 percent compared to the previous quarter.
The average price of a non-residential facility amounted to $2.896 per square meter in Baku in May.
The share of non-residential buildings, proposed on the market below the average price ($2,896 per hundred sq/m) amounted to 52.1 percent of the market portfolio.

The price on the non-residential facilities did not increase in any districts of Baku in May.

The most significant decline occurred in Sabunchu and Surakhani districts - by 0.4 percent.

The non-residential areas mainly composed of private buildings and apartments on the first and second floors of buildings in May 2011.