Suspension of Financing of Mortgage Crediting not to Affect Prices in Baku Real Estate Market
Azerbaijan, Baku / Trend corr U. Ismayilova / Suspension of financing of mortgage crediting will not affect the prices in Baku real estate market, the Executive Director of the 'Real Estate Market Participants' public organizations, Nusrat Ibrahimov, said on 16 June.
This week Azerbaijani Mortgage Fund (AMF) has suspended financing of mortgage crediting. The main reason for the suspension is expiration of the budget. AZN 26mln was allotted from the public budget of 2006 for the AMF. AZN 20mln was allocated in 2007; however the funds have not been transferred to the budget of the AMF.
According to Ibrahimov, the mortgage portfolio of the secondary dwelling market in Baku takes only 30% of all operations. For this reason, lack of mortgage credits allotted by the AMF will affect only the vividness of the market, not the prices.
"The prices for real estate are affected by the cost of construction materials, not the number and method of operations," he said.
Mortgage portfolio of the primary dwelling market in Baku makes up 1%, what is explained by the sell mainly through cash operations.
As a result of the monitoring of the public organization, inactivity has been observed in Baku real estate market within last four months, compared to previous years, what is caused by season indexes and rapid changes in prices due to the decision on rise in prices for public utilities and energy made by the Tariff Council.