Baku land market continues to rise in price
Azerbaijan, Baku, April 26 / Trend A.Hasanov /
In March, the average price of one hundred square metres of land in Baku increased by 4.5 percent - from $ 14,234 to $ 14,875 and came nearer to that of a six-month-old, a report of the public organization Property Market Participants said on Thursday.
"The main reason for the increase in prices was the increase in demand for private houses and land with the documents due to the demolition of old housing in the capital," a report said.
In March, rise in prices was observed in Baku's most districts, but the highest growth was observed in Garadagh district, which was 6.4 percent. Along with this, Binagadi and Garadag districts were relatively active in the land market. The most passive was Nasimi district.
The information reads that in March, the most expensive land plot was offered for sale in Nasimi district at a price of $ 350,000 per one hundred square meters (near Tea factory), and the cheapest one was offered for sale in Absheron district - in Pirekeshkul settlement - at a price of $350 per one hundred square meters.
Of the total area of 761.6 hectares of land on the market in March, 79.6 percent were empty areas, and the remaining was other residential areas and older residential areas. Despite the large number of proposed land, demolition of housing and private homes in the city center and close to the centre increased demand for 4.5 percent.
Term exposure of land on the market against the previous month fell by 1.5 percent, but the degree of risk for this type of property continues to decline. Within a month the number of deals increased, and the activity of this segment has changed in a positive way.
Market research shows that the land plots in the city centre are limited, and as a consequence prices rise for sites located in areas outside the centre.
The recent demolition of private houses in the centre and the increase in demand for land will contribute to the growth of prices.
"The interest in this property is still low due to the fact that the land can not be taken as collateral in the mortgage process. Meanwhile, the processes occurring in the last few months in the land market, allowed to reduce the risks of transactions in this market segment," the organization's experts believe.