Central Bank: Supply narrowing causes higher real estate prices in Baku

Business Materials 4 May 2012 17:18 (UTC +04:00)

Azerbaijan, Baku, May 4 / Trend A. Akhundov /

Little activity was observed in major segments of Baku's real estate market in the first quarter of 2012, the Central Bank of Azerbaijan's (CBA) report on the monetary policy as of the quarter said today.

"The prices at the secondary housing market increased by 3.8 percent in the first quarter of 2012, the primary one - two percent," the report said. "The main reason for rising prices in the first quarter was narrowing the proposal at the property market."

Price per square meter at the secondary housing market declined by 21.9 percent, the primary market - by 24.6 percent compared to 2008.

"The rent for residential facilities decreased by 0.3 percent, commercial buildings - rose by 2.6 percent in the first quarter," the report said.

The continuation of mortgage activity increased the activity at the property market, particularly at the secondary market.

"The volume of mortgage loans issued by banks amounted to 14.5 million manat in the first three months," the report said.

The official exchange rate is 0.786 AZN/USD on May 4.