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Baku's secondary market continues cheapening with increase in supply

Business Materials 1 August 2011 15:39 (UTC +04:00)

Azerbaijan, Baku, August 1 / Trend I. Khalilova /

Average price on the secondary housing market in Baku in June dropped by 1.1 percent to $989 per square meter compared to $1,000 in May, 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," the experts of the organization said.

In June, the volume of proposals on the secondary housing market increased by 0.8 percent compared to May.

The number of flats proposed on the market exceeded 6,955.

The increase in prices was not observed in any districts of Baku during a month. However, the largest decline in prices was observed in Sabunchu and Surakhani districts - 0.9 percent and 0.5 percent respectively.

The proportion of secondary residences proposed for the market at a price lower than the average, amounted to 56.2 percent.

The average room rate on the secondary market in June was 2.74, with the average price of each room at $43,634 and flat - $ 110,879.

The price index also fell by 2.2 points to 181.4.

The dynamics of the purchase and sale transactions decreased by 1.8 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 79.6 percent. The formation of the portfolio is linked with the entry of new buildings on to the market.

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