Earthquake in Turkey affects primary housing market in Baku
Azerbaijan, Baku, Nov. 21 / Trend A.Akhundov/
The destruction of high buildings as a result of earthquakes in countries neighboring to Azerbaijan alerted potential customers of the Baku primary housing market, Nusret Ibrahimov MBA Group CEO told Trend.
An earthquake forced 7.2 at the Turkish province of Van on Oct. 23. The tremors killed over 600 people. Earthquake also hit the Eastern regions of Turkey, resulting in human victims.
"Up and downs in prices on Baku primary housing market in October testifies for a difficult situation in this market." Ibrahimov said. "The growing number of troubled construction companies makes the potential homebuyer to treat this market even more suspicious. Procrastination, the requirement of additional funds in concluding contract, and careless attitude to mortgage lending in some construction companies scare a potential customer."
According to Ibrahimov, there is slowdown in appeals to house purchase and sale companies.
"Although four to six calls were reported to each agency during the summer months, the figure reduced to 0.8-1 in October. Baku primary housing market studied 180 large apartment buildings at the end of October, and 1,098 apartments were offered on the market," Ibrahimov said.
Ibrahimov noted the share of apartment buildings was 73.41 percent of the supply portfolio on the primary housing market, the share of private houses was 19.76 percent, and the share of cottages was 6.83 percent.
"Within a month, the share of apartment buildings in the portfolio has declined; whilst the share of private houses rose," Ibrahimov said. "The growing share of private houses and villas is linked with the suburban infrastructure, gradual solution of municipal problems and the increasing trend for separating purchase and sale operations from the city center."
"In the supply portfolio the first zone of the city occupied 2.28 percent of the offer, the second 58.31 percent, the third 38.5 percent and the fourth 0.91 percent," Ibrahimov said.