Azerbaijan, Baku / Trend corr U. Ismaylova / Simple mortgage lending terms has influenced the real estate market in Baku. The evaluation company of Caspian Property Services reported on 27 March that the shortage in the market has been caused by an increase in demand for property and a fall in its supply which has lead to a rise in prices.
"Since the beginning of the year prices have changed at an average of 5% -15%, depending upon the area of construction," Caspian Property Services noted.
Prices in March for accommodation under construction were $750-$1,100 per sq m in the centre of Baku and $500-$620 per sq m on the outskirts, which is 5% more expensive than in February.
Twenty blocks of flats have been constructed and put into commission in Baku during the last 15 years. The number of buildings does not meet the demand due to the urbanization of the city.
The Mortgage Lending Fund of Azerbaijan has allotted only 552 credits that make up AZN 17,700,000.