Construction sector

According to the data provided by the State Statistics Committee of Azerbaijan, in January 2009 the amount of the construction works in Azerbaijan being carried out by the construction companies totaled AZN 160.2mln or 4.6% more as compared to 2008.

Of them, AZN 103mln (64.3% of the gross volume) fell on the newly constructed buildings, AZN 31.3mln (19.5%) - capital repair, AZN 10.9mln (6.8%) - current repair, AZN 15mln (9.4%) - other works.

The share of the public sector in the construction made up AZN 57.2mln, and private sector - AZN 103mln.

According to the data provided by the State Statistics Committee, in January 2009 the volume of housing area given into use in Azerbaijan comprised 63,500 sq.m, an increase of 81% from the same period of the last year. However, in January 2009 the volume of new housing dropped by 78.6% in Azerbaijan.

Thus, according to the data by the State Statistics Committee, in January 2009 63,500 sq.m housing area was given into use compared with 78,400 sq.m in January 2008, 297,000 sq.m in December 2008 and 319,100 sq.m in December 2007.

In 2008 the housing area provided for use totaled 1556,900 sq.m, in 2007 - 1425,700 sq.m, in 2006 - 1218,200 sq.m, and in 2005 - 1583,500 sq.m.

In January 2009 AZN 24.7mln ($30.875mln) was invested in the housing construction, a decrease of 32.2% from January 2008. Investment for each sq.m totaled AZN 388,98 or $486,22.    

In 2008 AZN 664.5mln ($810.366mln) was invested in the housing construction which is 28.6% more than the investments in 2007. The investment for one sq.m of housing area composed AZN 426.81 or $520.5.

First housing market

According to the data provided by the MBA Group consulting company, in January the construction of 550 buildings continued compared to 555 buildings in December 2008. The construction of buildings was realized by 202 construction companies.

In January on the first housing market of Baku the average prices fell 1.3% to $1,106 per sq.m compared with December 2008.

The proposals of housing areas in the newly constructed buildings seem to be as:

Source: MBA Group

Second housing market

According to the data provided by the MBA Group consulting company, in January on the second housing market of Baku the average prices fell 0.7% to $1,605 per sq.m compared with December 2008

Summary table describes change of prices in districts of Baku:

Source: MBA Group

The share of the apartments proposed in price from $113,000 to $132,000 was 28.5%. The average room index of apartments in January composed 2.42 (-4.8%), the average price of one room - $47,500, one apartment - AZN 114,950. The apartments, proposed on the market higher than the average price, made up 32.8% of the portfolio of the second market, lower than average - 67.2%.

The period of the exposure of housing on the second market in January reduced 3.1% to 158 days. For the first time over the last several months, a 14.5% increase was recorded in the dynamics of concluding sale-purchase agreements in January, the company said. The general portfolio of market in January reduced 6.2%. In January 3,750 facilities were proposed for the market.

Land market

The prices on the Baku land market continue reducing. MBA Group reported that in January the prices on the land market of Baku dropped 2.8% to $27,670 per one hundred sq.m.       

Summary table indicates changes in prices in zones of the city:

The activity of market was preserved due to the business in the second zone of city, but risk increased because of presence of apartment buildings without the right on property.
Land sections under the new constructions composed seven percent, sections of the old brought-down houses - 31,2 percent.
In January on the land market it was not observed an increase in the portfolio of proposals because of the weak activity.

In January the most expensive land plot was proposed in Narimanov district of Baku for $340,000 per one hundred sq.m, and the cheapest - in Absheron district for $400 per one hundred sq.m, the public organization Participants of Real Estate Market said.

In January the average price of one hundred sq.m reduced 2.9% to $23,120 compared with $23,280 in December 2008. The period of the exposure of land plots grew 3.5% to 206 days.

Market of commercial facilities

In January a 1.9% reduction in prices occurred on the commercial facilities market, 2.3% in leasing of non-housing facilities. According to the data provided by the MBA Group consulting company, the price reduced 5.8% compared with the previous quarter, but an increase of 9% occurred compared with the same period of 2008. The average price of the one sq.m of commercial facility was $3,350 in January compared to $3.410 in December 2008.

The share of apartments proposed for the market lower than the average price was 61.3%. In January the number of facilities proposed on the market reduced 4.1%, number of sale-purchase operations grew 3.4%.

Summary table indicates change in price in zones of city:

However, the commercial facilities market of Baku became more active. In January the dynamics of sale-purchase operations grew 4.3% as compared with December, but reduced 17% compared with the same period of 2008, MBA Group reported.

In January was observed a one-percent increase in the profit of commercial facilities and a three percent increase in the prices, which is connected with a relative increase in the activity of market.

Last month 12.3% reduction of proposals was observed on the market of commercial facilities. Last month the average prices on the commercial facilities market reduced 1.9% compared with December 2008.

Summary table indicates price change:

Source: MBA Group

Leasing

The lease of apartments in Baku also becomes cheaper. In January a five-percent reduction of prices was recorded on the housing leasing market in Baku. The average cost of the lease of apartment in the center and near the center of Baku composed AZN 627.2 per month. Lease of one-room apartment in the center totals AZN 326.4, two-room - AZN 524.7, three-room - AZN 613.2.

Proposals on The housing leasing market in Baku grew 3.5% in January, and three-room apartments made up large part of the portfolio of the market - 36.3%, two-room apartments - 33.5%.

The share of housing proposed for the lease in January for the price from AZN 340 to AZN 620 was 53.5% of the portfolio of the market.

Market of building materials

In January 2009 the volume of the production of the construction materials in Azerbaijan increased 16.5%. According to the information provided by the State Statistics Committee, currently 97% of the construction materials is produced by the private sector.

In January, the prices in the market of construction materials in Baku decreased 0.8% compared with December 2008, but 35% compared with the same period of 2008.

During the month, monitoring was held over 85 types and 38 varieties of the construction materials. Growth was observed on 13, decrease on 29 and stability on 43. 

Public organization Participants of Real Estate Market

The share of the construction materials being produced in Azerbaijan makes up 54.1%.