Expert: Sale/Purchase Operations on Real Estate falls to Zero in Baku in April

Business Materials 18 April 2007 15:18 (UTC +04:00)
Expert: Sale/Purchase Operations on Real Estate falls to Zero in   Baku in April

Azerbaijan, Baku / corr. Trend U.Ismaylova / The Executive Director of the Public Organization "Participants of Real Estate Market", Nusret Ibrahimov, stated on 18 April that the sale/purchase operations on real estate fell to zero in Baku in April.

According to Ibrahimov, it is linked with the significant price increase in the market since January (15%) due to the decision to increase the prices of energy resources and communal services. "In April the houses are sold mainly through mortgage crediting. Practically no independent sale/purchase operations are made," he said.

Real estate monitoring in January showed that the economical indicators have changed considerably compared to the previous period. The AZERI-REI index increased by 2.35% or 5.8 points within the month and reached 254.7 points. According to Ibrahimov's forecasts, until the end of the year, the price increase for real estate will make up 28-29%. "The high price increase will be observed for newly-constructed buildings. The old houses will not bein demand and their price increase will make up 18-20%. The prices for uninhabited buildings will increase depending upon the activities of business people, 25-26%," he said.

Monitoring by the Public Organization of the real estate market in Baku in February indicated that stability is observed after the raise of the prices in the recent months of 2006. The index of Azeri-REI (index of real estate prices) in March increased 1.7% or by 4.7 points. With regards to house rental, there was not much change, nearly 8-9%. The increase of prices for the house rental will equal 11-12%. The purchasing capacity is expected to be increased by 30% due to the simplification of the mortgage crediting and measures of the State to improve the social life of the population.

In 2006 62,000 housing sale-purchase operations were made in Azerbaijan and 27,000 in Baku. In 2007 this figure will significantly increase to nearly 72,000 and in Baku to approximately 35,000.