Azerbaijan, Baku / corr Trend U.Ismayilova / The expected application of a new taxation system for Azerbaijan construction companies will affect the prices at the real estate market, Nusret Ibrahimov, the Executive Director of public organization 'Participants in Market Estate Market," said on 24 August.
Once the new system has been implemented, local construction companies will be expected to pay AZN 10 per sq m and the co-efficiency rates will be applied depending upon the position of the building. The co-efficiency rate will equal AZN 50 and will fluctuate depending upon the building's location. Ibrahimov said it is too early to forecast any change in prices of flats, because the companies are awaiting adoption of the co-efficiency rates by the Cabinet of Ministers of Azerbaijan.
Ibrahimov noted that the new system will encourage tax evasion, which previously led to artificial cuts in prices for a genuine buyer.
The average price of flats in Baku was $86,500 per one in July.