Construction sector

According to the data provided by the State Statistics Committee of Azerbaijan, in January to August 2008 the amount of the construction works in Azerbaijan being carried out by the construction companies is 55.1% or AZN 2115.3mln more. Of them, AZN 1629.3mln (77.0% of the gross volume) fell on the newly constructed buildings, AZN 285.9mln (13.5%) - capital repair, AZN 90.0mln (4.3%) - current repair, AZN 110.1mln (5.2%) - other works. The construction works by the private construction companies totaled AZN 1574.5mln and Public enterprises - AZN 540.8mln.

In January to August AZN 3410.6mln were spent on construction-assembly work in Azerbaijan which is 153.8% higher than the same period of 2007.

In general, over the past eight months, AZN 5396.6mln was invested into the construction sector of the country, which exceeds the indices of January-August 2007 by 136.6%. In particular, AZN 4069.3mln was invested in the building of production facilities (increase for the year made up 130.45).

Dynamic of construction works being carried out by construction companies

Source: State Statistics Committee

According to the data provided by the State Statistics Committee, in January to August 2008, the housing area given into use made up 886,000 sq.m, an increase of 119.3% from the same period of the last year.

The monitoring by the consulting company MBA made clear that by the end of August, in Baku 207 construction companies built 550 new buildings.

The number of construction companies in August comprised 207 and their number constantly increases. The forreign construction companies are prepared to use construction boom in Azerbaijan.

Thus in August two new construction companies were registered in Azerbaijan - Uranus and Ashtrom Azerbaycan Ltd.

In August the average price of the sold apartments in the newly constructed buildings grew by 0.8% as compared to July and 31.6% to the same period of 2007. Thus, the price of these apartments increased from $1177.6 per sq.m to $1187.

In the first market in August, the prices grew by 0.6% (13.1% during the year). In the second market, the increase was 0.9% (27.1% during year), in the land market- 1.5% (13.1%), in the market of commercial facilities- 2% (36.3%). The prices for the construction materials increased by 1.4% in August and 29.3% as compared to the same period of 2007.  

In August the dynamic of the increase in the number of deals in the second housing market was stable and did not undergo serious changes. In August the share newly constructed buildings in the common portfolio of proposals grew, but the apartments of second housing market decreased. The monitoring by the consulting company MBA made clear that by the end of August, as compared to July, the prices of the apartments in the second market in Baku grew by 1.2%, increasing from $1604 to $1624.

The share of three-room apartments in general portfolio of proposals was 33.7%, two-room - 31.3%.

The price rise is connected with an increase in the prices of the building materials. According to the data provided by the public organization Participants of Real Estate Market, in August the prices of the building materials in Baku grew by 3.4% as compared to July. Since the beginning of the year, the prices for the building materials increased by 14.3%, and as compared to the same period of 2007 by 33.6%.

As a result of the organization's monitoring over 82 types of building materials in August, decrease was recorded over prices of 19 types during the month.

The share of the building materials of local production in the market was 45%. In January-August the volume of the production of building materials in Azerbaijan increased by 1.3%, State Statistics Committee reported.

Today 91.9% of the construction materials is produced by private sector.