Azerbaijani real estate market to continue upward trend in 2012

Business Materials 2 July 2012 17:47 (UTC +04:00)

Azerbaijan, Baku, July 2 / Trend A.Hasanov /

Despite the slowdown in the real estate market, prices as of June 1 rose by 5.2 percent in Azerbaijan from the beginning of this year, and, compared to the same period of 2011, grew by 12.2 per cent, CEO of MBA Group consulting company Nusret Ibrahimov told Trend on Monday.

"The number of deals for purchase and sale of real estate by mid 2012 is less than in 2011 by 10 - 12 percent, but by the end of the year the market will stabilize, and we expect increased activity compared to last year," Ibrahimov said.

In 2007 - 2010 the real estate market experienced a crisis, and only since the end of 2010 the market began to stabilize. Amid the stabilization of the market in 2011 the number of purchase transactions of real estate has grown by an average of 22 - 23 percent.

"Of course this increase in transactions in 2011 compared to 2010 resulted in a rise in the cost price by six percent, and in 2012, this growth will be even steeper than in 2011," Ibrahimov said.

He said that in spite of the decrease in the number of sale transactions on the real estate market this year compared with 2011, by late 2012 increase in their numbers, as well as the rise in prices - by 6 - 8 percent is expected.