Construction sector

According to the data provided by the State Statistics Committee of Azerbaijan, in January-April 2009 the amount of the construction works in Azerbaijan being carried out by the construction companies totaled AZN 807.5mln or 3% more as compared to 2008.

Of them, AZN 574.1mln fell on the newly constructed buildings, AZN 126.3mln - capital repair, AZN 55.6mln - current repair, AZN 51.5mln - other works.

According to the data provided by the State Statistics Committee, in January-April 2009 the volume of housing area given into use in Azerbaijan comprised 363,600 sq.m, an increase of 0.1% from the same period of the last year. During the reported period, AZN 1.505bln was invested in the housing construction-assembly works, an increase of 129% from the same period of 2008. AZN 1bln was invested in the construction of production facilities, an increase of 4.5%. 

According to the data provided by the State Statistics Committee, in April the volume of new housing area in Azerbaijan fell 30.2% compared to March of this year and 67.6% to December 2008. In April 2009 96,100 sq.m housing area was put into use compared to 137,600 sq.m in March, 66,600 sq.m in February, 63,500 sq.m in January 2009. In April 2008, housing area given into use totaled 97,700 sq.m.

In January-April 2009 the investment in the housing construction in Azerbaijan totaled AZN 142.6mln, which makes up 15.3% of investments in January-April 2008. The investment for one sq.m of housing area composed AZN 392.19. The investments in April 2009 amounted to AZN 55.7mln, and per sq.m - AZN 579.6.

First housing market

In April the average prices fell 1.9% to $987 per sq.m on the first housing market of Baku as compared to March.

The average area of apartments in the high buildings incerased 0.4% to 121.7 sq.m. The average height of new buildings in August was 15.1 floors.

In April, construction of 178 buildings was continued by 454 construction companies compared to 461 buildings and 189 companies in March. During April, the construction and sale of apartments in 10 buildings and three buildings just entered the market.

Second housing market

In April 2009 the average prices on the market fell 10.4%.

During this period, the price of 1-room apartments reduced 8.3%, 2-room - 10.5%, and 3-room - 10.9%.

Experts see the reason for price reduction in fall in the purchasing capacity of population due to the global financial crisis, as well as problems appeared in the field of sales on credit, psychological factors as expectation of further reduction. They also predict that the prices will stay stable in coming days.

Land market

In April the prices on the land market of Baku dropped 3.2% to $20,730 per one hundred square metres, the Participants of the Real Estate Market public organization reported.

In April 810,700 ha land area was proposed on the market.

The prices have not yet affected the profitability of the land market, but the impact is observed on the period of exposition and liquidity of the market. The situation in the market has also led to increase of risk in this segment.

In April, the most expensive plot of land was offered in the Narimanov district of Baku at a cost of $330,000 per hundred sq.m, the cheapest in Sabunchi - $350 per hundred sq.m.

Market of building materials

Construction materials continue to cheapen in Azerbaijan. The monitoring by the public organization Participants of Real Estate revealed that the average cost of construction materials decreased 5.1% compared with March 2009.

During the month, monitoring was held over 87 types and 38 varieties of the construction materials. Reduction was observed on 36, stability on 51. Growth was not observed over the recent three months.  

Prices of cement in Azerbaijan over the past two months fell two times, which led to reduction in costs in the construction sector and the restructuring of the cost of housing.

The share of local production of construction materials on the market amounted to 52.9%.

Azerbaijan produced 337,700 tons of cement in Jan.-Apr. 2009, the State Statistics Committee said. 

Over 90 percent of building materials is produced by the private sector.