In January-October the amount of construction works increased in Azerbaijan by 31.8 percent. The construction works in the public sector amounted to 25.7 percent during the year, in the private sector - 74.3 percent.
Of the total construction works, 74.2 percent accounted for initial construction, reconstruction and expansion, 16.7 percent - capital repair, 4.9 percent - current repair, 4.2 percent - other construction work
Total area of residential buildings put into operation in Azerbaijan in January-October reached 1.371 million square meters, which is 33.3 percent more than the same period of last year.
Investments in the construction of production facilities totaled 3.589 billion manat, which is 31.3 percent more than January-October 2009, construction of facilities in the service sector - 3.468 billion manat, which is 1.6 percent more than the same period of last year.
Total investment in main capital during this period amounted to 7.057 billion manat increasing by 14.8 percent. Primary means of expenditure on building and construction works amounted to 4.591 billion manat, which is 6.8 percent more than in the first ten months of 2009.
First residential market
Average price per square meter of residential area in the primary housing market of Baku decreased by 0.1 percent or 1 manat to 864 manat in October, the NGO Participants of Property Market reported.
The decline in prices was at 0.2 percent in October compared to the beginning of the third quarter, 3.7 percent - early 2010 and 6.9 percent - the same period last year," the NGO reported.
The primary market recorded an activity and continuation of recovery, which is typical for the season.
The price index decreased by 0.1 percent in October and hit 331 points compared to 332 in September.
For the number of buildings under construction the Yasamal district ranked first (27.2 percent), Khatai - second (20.9 percent) and Nizami - third (17 percent).
Number of houses for sale increased from 439 to 442. The number of construction companies hit 155 compared to 153 in the previous month.
Summary table for price changes in the primary housing market:
Districts of Baku |
Residential area in manat |
Non-residential area in manat |
Sabayel |
1,423 |
3,535 |
Nasimi |
1,414 |
2,781 |
Narimanov |
1,310 |
3,266 |
Yasamal |
955 |
3,158 |
Khatai |
712 |
2,668 |
Nizami |
679 |
1,952 |
Binagadi |
671 |
2,365 |
Sabunchu |
562 |
1,750 |
Surakhani |
487 |
1,355 |
Garadag |
424 |
1,200 |
Average price |
864 |
2403 |
Secondary residential market
Prices in the secondary housing market of Baku fell by 1.3 percent in October, Property Market Participants public organization said.
The number of new buildings on the housing market continues to grow in Baku, and in September this figure was 60.4 percent.
Despite 1.2-percent increase in proposals on the market, the average price fell by 1.2 percent. Under the influence of mortgage lending in this segment of the market the liquidity remained stable, but the risk is still high. According to studies, on the secondary market price index declined by 1.2 percent. Price index on the secondary market decreased by 2.7 point to 198.7 points.
Share of Yasamal, Nasimi, Narimanov and Khatai districts in the portfolio of this segment was 79.6 percent.
Average price per square meter of secondary housing was $1,079 reducing by $14, and the share of apartments proposed to the market below the average price amounted to 57.4 percent in the total portfolio of the market.
The average room rate on the secondary market amounted to 2.56, the average price of the room - $43,196, the average apartment price - $115,765.
Land market
The average price for one hundred square meters of land remained unchanged- $14,243 in Azerbaijan in October, Property Market Participants public organization said.
The price for one hundred square meters of land reduced by 0.2 percent to $170,180 in the first zone and increased by .2 percent up to $189.69 in the third zone. Prices have remained stable in the second and fourth zones of the city - $96,842 and $3,522 per one hundred square meters, respectively.
The experts said that too high prices for land in the city center led to lower prices and a decline in demand in the first zone of the city.
Although the excess of price above the real value did not seriously affect the profitability of land, the exposure period increased and liquidity reduced. Moreover, the interest in this type of property declined due to the fact that the land still can not be the subject of a pledge.
Processes occurring in recent months in this market also influenced the relative risk reduction.
The most significant decline in prices in October was observed in Binagadi and Gardag districts - by 0.3 percent. The price decrease also occurred in the Nasimi and Sabayel district of Baku - by 0.4 percent. The most active districts in the land market were Binagadi and Khatai. The most passive was Nasimi district.
The most expensive land was offered to the market in Nasimi district of Baku for $230,000 per hundred square meters, the cheapest - in the Absheron region for $ 350 per hundred square meters.
About 798.6 hectares of land was proposed to the land market in Baku in October.
The term of land exposition increased by 0.8 percent.
Building materials
Prices on construction materials in Baku fell by 0.8 percent in October, the Real Estate Market Participants organization reported.
The specialists of the organization monitored 38 items and 88 kinds of construction materials. Some 53.41 percent of goods were produced in the local market and 46.59 percent was imported.
The construction materials rose by 3.2 percent in October compared to the beginning of the third quarter, 19.1 percent compared to January and 19.1 percent -the same period last year.
Price decrease was observed on the following types of building materials (in percentages):
Timber |
2.08 |
Iron layers |
3.57 |
Fittings |
0.50 |
Roofing slate |
2.16 |
Zinc sheet |
2.92 |
Isolation materials |
3.33 |
Slate |
2.13 |
Glass wool |
9.09 |
Gypsum plasterboard |
2.73 |
||
Sand |
5.26 |
||
Price increase was observed on the following types of building materials (in percentages):
Dict |
3.37% |
Glass |
2.99% |
Commercial facilities
The rental prices on non-residential facilities in Baku fell by 0.5 percent in October. Meanwhile, the rental prices on commercial buildings remain unchanged, the Participants of the Real Estate Market public organization reported.
The number of commercial property purchase and sale transactions fell by 2.5 percent. The number of proposals increased by 1.3 percent.
Despite the increase in market prices, low demand led to an increase in exposure time, which increases the risk level for such properties.
The average price per square meter of non-residential property dropped from $2,973 in September to $2,958 in October.
Prices increased by 0.5 percent compared to the second quarter and declined by 1.3 percent compared to October 2009.
The table indicates the changes in commercial property prices:
City zones |
Average prices in $ in October |
Price change in $ |
I |
4,881 |
Stable |
II |
3,477 |
0.5 |
III |
2,140 |
-0.8 |
IV |
802 |
1 |