Since June 1, Azerbaijan resumed mortgage lending, which was suspended during the summer of 2007 due to lack of funds. Resuming mortgages will help revive the construction sector and consequently the real estate market in the country.
According to the data provided by the State Statistics Committee of Azerbaijan, in the first half of 2009 the amount of the construction works in Azerbaijan being carried out by the construction companies totaled AZN 1362.0mln or 2.2% more as compared to 2008. The share of state enterprises totaled AZN 373mln and private enterprises - AZN 989mln.
Of them, AZN 877.2mln (64.4 percent) fell on the new constructions, reconstruction and expansion work, AZN 313.4mln (23 percent) - capital repair, AZN 82.1mln (6 percent) - current repair, AZN 89.3mln (6.6 percent) - other works.
Housing fund of Azerbaijan in the first half comprised 510,300 square meters compared to 596,700 square meters in the same period of 2008. In annual terms, the decline in the sector was 14.5 percent. However, in June 2009, an increase was observed in housing. For example, in June the volume of housing area put into use in Azerbaijan rose by 53.8 percent compared to May of this year, but fell 47.1 percent compared to May 2008.
According to data provided by the State Statistics Committee of Azerbaijan, in June 2009 88,900 square meters of housing was put into use compared to 57,800 square meters in May, 63,500 square meters in January 2009, 297,000 square meters in December 2008 (record figure for the last year). In June 2008, the volume of housing was 168,000 square meters.
In January-June 2009, 245.3mln manat ($306.625mln) was invested in the housing construction in Azerbaijan, a decrease of 4.4 percent from January-June 2008. Investments in housing construction in June 2009 amounted to 53.5mln manat ($66.875mln).
During the first half of 2009 were built and put into service the following facilities: Plant of gold and copper in Gedabey district, complex of international bus station in Baku, the fiber-optic cable in length of 163.3 kilometers, telephone stations with 25,900 numbers, schools for 288 pupils, pre-school for 90 children, a 35-bed hospital, outpatient clinical facilities for 90 people, a club with 140 seats, an Olympic sports complex in Shemkir, Tennis Academy and Eye Diseases Research Institute in Baku, medical and diagnostic center in Barda city.