New Azerbaijan Town Planning Code to increase land market interest

Business Materials 25 January 2012 16:34 (UTC +04:00)

Azerbaijan, Baku, Jan. 25 /Trend A.Akhundov/

Abolition of the requirement to obtain permission for the construction of private homes no more than three-storeyed and no higher than 12 metres will increase interest in the land market in Baku, CEO of consulting company MBA Group Nusret Ibrahimov told Trend.
The Milli Majlis (Parliament) of Azerbaijan adopted a project of the Town Planning and Building Code on its first reading at the end of December 2011, under which private housing, provided by the application of the notification, does not require a permission order. The essence of the project is that the individual, who wants to build a house, should have a designer operating in accordance with the law.

It is now necessary to inform the relevant executive authority about the intention to build a home and submit plans of the building. If the structure is not contested during a month, the person who intends to build a house can begin construction without a permit, but if there are claims and demands, they must be taken into account. These claims and proposals must be justified by legal rules of construction and by town planning documents.

"Today, many people are eagerly awaiting the adoption of this code, the application of which will increase interest to the land market, particularly that of the construction of residential buildings. It is especially interesting to those who have limited financial resources," Mr Ibragimov said.

He went on to say the interest of the population displaced from the centre of the city to the outskirts, will, by the adoption of the Code further accelerate this process.
"We will see the results in the near future, the share of land market transactions for buying and selling of real estate in Baku will increase," Mr Ibragimov said.

The Code will regulate various issues including planning areas, making town-planning documents, the transparency of the process, ensuring that the construction activity corresponds to planning documents, security of construction projects, evaluation and consideration of the effect of urban development and construction activities on the environment and building permit process.

"This code differs from the previous legislative base by many innovations, as it creates room for manoeuvre in the market, which ultimately has a positive effect on it," Mr Ibragimov concluded.