Rental housing prices rise by eight per cent in Baku

Business Materials 11 September 2012 14:05 (UTC +04:00)

Azerbaijan, Baku, Sept. 10 / Trend A. Hasanov /

The cost of renting a house increased by an average of eight per cent from $663 to $716 in Baku in early September, MBA Group consulting company director General Nusret Ibrahimov told Trend on Monday.

"Despite this increase, renting one square metre increased in price by 4.8 per cent from $10.89 to $11.42, while the average increase in prices for rented property was 4.9 per cent," Ibrahimov said.

He added that this increase is being observed annually on August 20. This is associated with the beginning of the school year and the students' demand for real estate. This will continue until late September.

"The next increase will be observed before the New Year," he added.

At present commercial real estate is the most attractive sector in terms of investments in Baku's property market. The primary housing market has lost this feature, he said.

Ibrahimov added that the prices on the real estate market will grow by four to five per cent and perhaps six by the end of this year. The biggest growth will be observed in the commercial real estate and secondary market.