Decrease in real estate prices expected in Azerbaijan

Business Materials 10 May 2019 15:00 (UTC +04:00)

Baku, Azerbaijan, May 10

By Aysham Rustamova - Trend:

The number of apartments put up for sale in Azerbaijan in January-April this year increased by 9.3 percent, however, the purchasing power of the population is still lower than the supply, head of Azerbaijan’s appraisal company FM Consulting Nahid Hasanov told Trend.

He said that stagnation is observed in the real estate market.

“Interest in objects with a large area is small,” he noted. “There is mainly demand for small one-room and two-room apartments. Many factors contribute to stagnation. The main one is psychological. People are reluctant to invest in real estate. The situation in the banking sector is stabilizing and the population prefers to place their money in banks.”

“There is demand for the rent of big objects,” he said. “They are being rented for restaurants and shops. The lower floors of high-rise buildings are mainly rented. But there is no visible price increase. In February, market prices for apartments decreased by 1.55 percent. Apartments near metro stations and universities are also more in demand. Prices are expected to decline by the end of the year. There will be some recovery in the real estate market from September to October.”