Expert: Further rise in prices in Baku’s real estate market inevitable
Baku, Azerbaijan, July 14
By Anvar Mammadov – Trend:
Further rise in prices in Baku’s real estate market is inevitable, Nusret Ibrahimov, director general of the MBA Group consulting company, real estate expert, said July 14.
“At present, the process of stabilization is underway in the market,” he said, adding that insignificant price fluctuations testify to it.
"Thus, the process of stabilization is accompanied by price fluctuations in the real estate market,” Ibrahimov added. “If there is a growth in the market for several months in a row, then there may be a slight decrease one or two months.”
“A similar situation was observed here,” he said. “After the prices increased in the market for several months (real estate prices increased by 0.56 percent since early 2017 and by 1.37 percent in May), prices decreased by 0.59 percent in June. This is normal and it shows that the market is gradually stabilized and further growth is inevitable."
Ibrahimov added that a number of factors have a positive effect on the stabilization of the situation in the market.
The market revived after a sharp decline in prices in 2016 due to these factors (the Baku real estate market decreased by 31.53 percent in 2016).
"Such factors as the construction of social housing, the restoration of the activity of the Azerbaijan Mortgage Fund, the implementation of a number of state projects and the restoration of bank lending positively affected the stabilization of prices in the market,” he said. “The prices began to increase again due to these factors and prices have already increased by 0.56 percent since early 2017.”
Earlier, Ibrahimov said that the prices in the real estate market can increase by ten percent in 2017.
The gradual adaptation of the population to the current situation can also contribute to it.