Price rise expected in Baku's secondary housing market, says expert

Business Materials 29 August 2018 09:33 (UTC +04:00)

Baku, Azerbaijan, Aug. 29

By Matanat Nasibova - Trend:

Prices in the real estate market of Baku can grow from four to six percent by 2019, general director of the consulting company MBA Group, expert in real estate Nusret Ibrahimov told Trend.

According to the expert, rise in residential real estate prices will be observed already in early September, right after the end of summer season.

"This factor is of traditional nature. The summer months are always considered "dead period" for conducting financial transactions for sale and lease," he said.

"As a rule, the purchasing power of the population and general activities in the residential real estate market significantly decrease during summer season. However, the tendency of price growth remains. This is usually due to the commercial housing, land, and holiday home markets," added the expert.

According to expert's estimates, the highest growth in housing prices in Baku is usually observed in Khatai, Nasimi and Yasamal districts.

"This is mainly due to the active purchasing power of the population because of the increased demand for buying and selling apartments in these dormitory areas of the city," the expert said.

Presently, there is a slowdown in construction growth rates, which is also seasonal, he said.

"In summer, less money is invested in this sector, which is due to a decrease in activity in the housing market. But I think that a noticeable activity will also be seen in this section of the market in autumn. To date, the construction sector in Azerbaijan is developing dynamically, as the figures of 1H2018 indicate. For example, at the beginning 2018, residential buildings with a total area of over 946,000 square meters were commissioned, which is almost 13 percent more than the figure of January-July 2018," Ibrahimov said.