Azerbaijani Realtors Likely to Become Bankrupt

Business Materials 23 May 2007 15:16 (UTC +04:00)

Azerbaijan, Baku / Trend corr U. Ismayilova / Azerbaijani realtors could face serious bankruptcy problems, the head of the State Real Estate Registration Service, Arif Garashov, said on 23 May.

According to Garashov, the higher the prices for construction materials, the higher the price for real estate increase. In turn prices for construction materials increase due to the rise in prices for energy.

"If realtors do not increase the prices for real estate in accordance with the construction market, they could become bankrupt," he said.

The monitoring held by the Real Estate Market Participants public organization revealed a 4.1% increase in prices at the construction materials market of Baku in April, compared to March, and 23.6%, compared to April 2006.

Prices for real estate are not likely to rise rapidly by the end of 2007. The rise in prices for real estate in Baku has made up 25% since the beginning of 2007 due to the decision by the Council on Tariffs to raise the prices for public utilities and energy from January.

"A decrease in the real estate market in Baku will not occur. In fact a steady increase will continue during the year," he said.