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Price increase expected in Baku real estate market

Business Materials 19 July 2018 18:50 (UTC +04:00)

Baku, Azerbaijan, July 19

By Azad Hasanli - Trend:

Prices in the Baku real estate market may grow 6 percent until the end of the year, Nusrat Ibrahimov, director general of the MBA Group consulting company, told Trend July 19.

Ibrahimov noted that in general, real estate in Baku is becoming more expensive. However, this happens mainly at the expense of the markets of commercial housing, land, individual and cottage houses, he said.

Thus, in January-June 2018, the value of land increased by 3.32 percent, commercial facilities - by 0.23 percent, and the cost of their rent went up by 1.46 percent, he noted. The highest growth since the beginning of the year was observed in prices for individual and cottage houses - by 13.27 percent, he said.

The construction sector in Azerbaijan is gradually recovering from the stagnation of the last 2-3 years, he added.

During the first half of 2018, construction volumes in Azerbaijan amounted to $463.8 million (an increase of 17.6 percent over the year), Ibrahimov said. Since the beginning of the year, residential buildings with a total area of ​​946,400 square meters were commissioned, which is 12.9 percent more than in January-June 2017, he noted.

Partly the increase in prices was conditioned by the demand for acquiring housing by taking out mortgage, he added.

For the five months of this year, Azerbaijan Mortgage and Credit Guarantee Fund issued mortgage loans worth 98.4 million manats, which exceeds the figures for January-May 2017 (65.1 million manats) by more than half.

(1.7 manats = 1 USD on July 19)

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