Norman Flynn: Azerbaijan Needs Attract Significant Funds to Develop Real Estate

Business Materials 7 April 2007 15:41 (UTC +04:00)
Norman Flynn:   Azerbaijan Needs Attract Significant Funds to Develop Real Estate

Azerbaijan, Baku / Trend , corr. U. Ismayilova/ Norman Flynn, the President of International Real Estate Fund, has said that Azerbaijan needs to attract significant funds to develop its real estate market, as well as make it more transparent.

At the same time, according to Mr. Flynn, as compared with other Caucasian countries, Azerbaijan can be proud of its market.

According to him, the U. S. real estate market is the most efficient, transparent, and fluid market in the world. It has been dealing in private property use and transfer for 231 years and has developed a very organized market. " France and Germany are also more sophisticated markets, but not as fluid nor as transparent. Russia is developing a more transparent market, particularly in St. Petersburg and Moscow but is still behind Western Europe" he said.

According to Mr. Flynn, the Azerbaijani Government's introducing new corresponding norms, regulations, and laws may become an impetus for the development of Azerbaijan's real estate market.

Commenting the opinion of the President of International Real Estate Fund, the Executive Director of Azerbaijan's Public Organization - "Real Estate Market Participants", Nusrat Ibrahimov, said that there was no need to introduce the Bill - "On Real Estate" in Azerbaijan.

"It is necessary to improve what that is available, particularly, the Civic Code and regulations of the State Real Estate Register Service," he said.

In March, 2007, organization "Real Estate Market Participants", and the International Real Estate Fund signed an agreement on foundation of "Professional Association of Azerbaijani Realtors".

According to Mr. Flynn, Azerbaijan's real estate market's greatest advantage is its mortgage crediting.

"From all observations, the market in Baku is doing very well. Its greatest advantage is affordable mortgage capital for the citizens to buy the real estate they are really seeking. That what AMF is doing now is a very good start, but won't be nearly enough to meet the real demand. There is a vibrant developer's market and product is being added rapidly to meet the demands of the speculators and end users," considers Mr. Flynn. According to him, such markets outside of Baku are still developing, but should ultimately begin to catch up as Azerbaijan continues to strive to meet International Standards.

Notably, AMF has presented over 720 loans to the sum of AZN 24 mln. since the time it was founded.