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Real estate expert talks Baku's housing sector in 2017 and 2018

Business Materials 11 December 2017 16:01 (UTC +04:00)

Baku, Azerbaijan, Dec. 11

By Anvar Mammadov – Trend:

The year 2017 has become a year of relative stability for the real estate market of Baku, Nusret Ibrahimov, director general of the MBA Group consulting company, real estate expert, told Trend.

He said the pace of market contraction, which was high in 2015 and 2016, has slowed down this year, and relative stability was observed on the market.

He noted that the main reasons for the relative stabilization of the market were the implementation of pilot projects to rebuild the first microdistrict in Baku, the construction of social housing, as well as an increase in lending through the Azerbaijan Mortgage Fund.

"These three factors together have had a significant impact on the stabilization of the real estate market and further growth in the market can also be linked to the activity and volumes of the implementation of these projects," the expert believes.

He noted that the real estate market may show growth starting the second half of next year.

"I think that the market will continue to stabilize in the first half of 2018, and we will see growth from the second half of the year. But the growth rates will be directly related to the implementation of both pilot projects and construction of social housing. If the pace of implementation and the volume of projects do not increase, then the growth will be insignificant. Also I believe that it is necessary to increase lending through the Azerbaijan Mortgage Fund, "the expert said.

Ibrahimov further said that the prices in the real estate market for the 11 months of 2017 decreased by 4.28 percent. In 2016, prices in the real estate market of Baku in dollar terms decreased by 31.53 percent.

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