Azerbaijan, Baku / corr. . U.Ismaylova / The monitoring by the Public Union "Participants of Real Estate Market" on the real estate market of Baku indicte that stability is observed after the raise of the prices in the first months of 2007. According to the information provided by the Union, changes in the prices resulted in simplifying the portfolio of the offered real estate.
The index of Azeri-REI (index of real estate prices) in March increased 1.7% or by 4.7 items due to the land market. The prices for housing area were relatively stable.
The price for the second housing increased by 3.7%, equal to the same period of 2006. The average cost for the second housing was $1173 for one square meter in the city. The maximal price increase was observed in the fourth zone and full stability in the first zone. Observant of the project stated that the prices increased mainly for the houses of " Leningrad" and " Kiev" which are located in the third zone of the city.
In March 36.6% of the pack of proposals in the second market fall on the share of the newly constructed buildings, and the pack of proposals for Leningrad houses decreased by 12.5%. The average prices for the houses in March made up $21342300, an increase of 5.2% from February. The price increase are justified through price increase for the land market and construction materials.
The monitoring made clear that in March the pack of proposals for the first market decreased. The average cost for one square meter in the city amounted to $948. The price increase in the land market was 1.4% as compared to previous months. In March the cost of one hundred part of the land amounted to $19679.
The price increase in the house renting market was 1.4%. The average cost in the first and second zones was $613 for apartment. The average cost for renting of commercial facilities in the city was $20.8 for square meter.
The market multiplier that is the indicator of the activities of population and revenues of population from real estate decreased by 5.0%.
After immediate price increase at the beginning of the year, stability is observed in the real estate market. The pack of proposals in the market has been formed at the expense of mortgage crediting.