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Collapse of Newly Constructed Building in Baku Will Lead to Price Increase in Resale Market: Expert

Business Materials 29 August 2007 13:02 (UTC +04:00)

Azerbaijan, Baku /corr. Trend U.Ismaylova / The Executive Director of the Participants of Real Estate Market public union, Nusret Ibrahimov, said on 28 August that the collapse of the newly constructed 16-storey building in Baku will lead to price increases in the resale market.

On 28 August at around 5pm, the building constructed by the company 'Mutafakkir' collapsed. The company's head, Asker Aliyev, was arrested for contravening article 222 (breaking safety regulations during construction and other works) of the Criminal Code of Azerbaijan.

According to final reports, seven people died in the incident.

According to Ibrahimov, the collapse of the newly constructed building will increase the demand in resale property and land and decrease the demand in the first market (newly constructed buildings).

"It is not ruled out that after the collapse of the building, the number of the newly constructed buildings may decrease," Ibrahimov said.

According to monitoring carried out by the Participants of Real Estate Market public union, in July 583 new buildings were constructed in Baku. The number construction companies equal 223 and the average number of floors of the newly constructed buildings is 15.4.

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