Review of construction sector in Azerbaijan (January 2012)

According to the State Statistics Committee, in January 2012, the amount of construction work increased in Azerbaijan by 42.5 percent compared to the corresponding period of last year.

The construction work conducted by state companies hit 28.1 percent of the total volume and 71.9 percent - by private companies.

Of the total construction work, 75.9 percent accounted for new construction, reconstruction and expansion, 13.8 percent - capital repair, 3.2 percent - current repair, 7.1 percent - other construction work.

Housing commissioning volumes in Azerbaijan dropped by 2 times in January, compared to December and increased by 2 times compared to January last year.

According to the Azerbaijani State Statistics Committee, about 168,200 square meters of housing were commissioned in January compared to 342,500 square meters in December (the best index last year) and 82,100 square meters in January 2011.

Primary residential market

According to the "Property Market Participants" public organization, the prices on the housing market in Baku were not changed in January 2012 compared to the previous month and amounted to 825.2 manat per square meter.

Source: Property Market Participants" public organization

The prices dropped by 1.4 percent compared to the previous quarter and by 2.7 percent in January last year. Compared to the beginning of the crisis period (September 2008), prices fell by 30.9 percent.

As in previous months, monitoring of Baku's primary housing market covered 424 high-rise apartment buildings in January, and the number of construction companies remained the same - 151.

Like the previous months, in Jan. most of the apartments in new buildings were three-room.

The average area of one-room apartment in new building amounted to 60.7 square meters, two-room - 92.1 square meters, three-room - 131.8 square meters, four-room - 182.9 square meters and five -room 238.3 square meters.

Secondary market

Certain increase in demand and supply in January led to a relative revival in Baku's secondary market, compared to February.

However, the index of average prices was not changed. According to the Public Organization "Property Market Participants", the index of average prices on one square meter was $955, and on one apartment - $111,334. As in previous months, the share of Yasamal, Nasimi, Narimanov and Khatai districts in the total portfolio of proposals amounted to an absolute majority, and their combined share amounted to 74.5 percent.

The situation with the rooms was not changed as in previous months. The reduction in the number of 4-and 5-room apartments was observed. The maximum reduction was observed for 4-and 5-room apartments, while the share of 1 -, 2-and 3-room apartments in a portfolio of proposals has increased. The maximum growth of 1.2 percent was observed for 2-room apartments.

The experts consider relative recovery in the "secondary housing" as natural. People prefer to invest more in secondary housing than in buildings with poor utilities and land plots. And this affects to the relative increase in activity. However, commenting on the factors negatively affecting the recovery in the market, one expert said that the main obstacles for activity in the market are the primacy of market prices and the weak mortgage lending.

No significant changes in the prices were observed amid the general stability in the secondary market in January and in other major towns across the country. Experts predict that prices will remain stable in the next few days.

Prices at the secondary housing market in different places of the capital and major towns of the country, in thousands of dollars:

Number of rooms

location

Type of project

Construction method

Jan. 1,2012

Feb. 1, 2012

Change in %

1

Montin settlement

"Stalin"

stone

62

62

-

2

-

-

-

78

78

-

3

-

-

-

95

95

-

1

In the center

"historical-architectural"

-

72

72

-

2

-

-

-

105

105

-

3

-

-

-

165

165

-

4-5

-

-

-

200

200

-

1

1-9 micro-region

"French"

concrete/ panel

42

42

-

2

-

-

-

55

55

-

3

-

-

-

64

64

-

1

-

"Leningrad"

stone

46

46

-

2

-

-

-

57

57

-

3

-

-

-

73

73

-

4-5

-

-

-

90

90

-

1

Yasamal

"Khrushchev"

concrete/ panel

41

41

-

2

-

-

-

55

55

-

3

-

-

-

67

67

-

1

-

"Leningrad"

stone

45

45

-

2

-

-

-

60

60

-

3

-

-

-

74

74

-

4-5

-

-

-

96

96

-

1

Neftchiler

" Khrushchev "

stone

39

39

-

2

-

-

-

54

54

-

3

-

-

-

73

73

-

1

-

"Minsk"

concrete/ panel

35

35

-

2

-

-

-

52

52

-

3

-

-

-

65

65

-

4-5

-

-

-

85

85

-

1

-

"Minsk"

stone

43

43

-

2

-

-

-

67

67

-

3

-

-

-

85

85

-

4-5

-

-

-

94

94

-

1

Qara Qarayev

"Stalinka"

stone

41

41

-

2

-

-

-

63

63

-

3

-

-

-

85

85

-

1

Ganja

stone

21,5

21,5

-

2

-

-

-

28

28

-

3

-

-

-

39

39

-

1

Sumgayit

-

stone

31

31

-

2

-

-

-

36

36

-

3

-

-

-

45

45

-

1

Mingachevir

"Leningrad"

concrete/ panel

17,5

17,5

-

2

-

-

-

25

25

-

3

-

-

-

29

29

-

Land market

According to the "Property Market Participants" public organization, in January the average price on one hundred square meters of land in Baku increased by 1.3 percent - from $13,694 to $13,806.

The main reason for the increase in prices was the increase in demand for private homes and land plots with the documents due to the demolition of old housing in the capital.

The prices increased in most districts of Baku in Jan., but the highest growth was observed in Garadagh district, which was 1.9 percent. Along with this, Binagadi and Garadag districts were relatively active in the land market. The most passive was Nasimi district. The most expensive land plot was offered at the market in Nasimi district of Baku in Jan. (near the tea factory) for $350,000 per one hundred square meters, the cheapest one - in the Absheron district (Pirekeshkul settlement) for $ 350 per one hundred square meters.

About 79.1 percent of the total area of ​​769.5 hectares of land offered at the market in January fell to empty areas, and the remaining area was other residential areas and older residential areas. Despite the large number of proposed land plots, demolition work in the city center and near the center of housing and private homes increased demand by 1.3 per cent.

The land exposition term on the market increased by 0.7 per cent the previous month, but the degree of risk for this type of property continues declining. Within a month the number of concluded deals increased, and the activity on this segment changed in a positive way.

Market research shows that the land plots in the city center are limited. As a consequence, prices on plots located in areas outside the center increase.

The recent demolition of private houses in the center and the increase in demand for formalized land plots will promote the growth of prices.

The interest in this property is still low due to the fact that the land plots can not be taken as collateral in the mortgage process, the experts of the organization said. Meanwhile, the processes occurring in the last few months on the land market, reduced the risks of transactions in this market segment.

Building materials

According to the "Property Market Participants" public organization, in January 2012 the market prices on construction materials decreased by 0.33 percent compared to the previous month.

The average price increased by 14.8 percent compared to early 2011 and declined by 0.4 percent compared to the previous quarter.

The share of domestic products in the total amount of building materials was 52 percent, surpassing the goods imported into the country by 0.1 percent compared to the previous month.

Monitoring on 38 items and 88 kinds of building materials was conducted.

The beginning of the year is always characterized by stagnation in all segments of the real estate market. The building materials market is not the exception. This led to the stabilization and reduction of prices.

The prices on 9 of 10 building materials changed.

In January, there was reduction in price on wood, iron pipes and other building materials.

The summary table has the building materials, which prices reduced (in percentages):

emery stone

-0.8

glass

-0,4

wood

-0,2

Iron pipes

-1.8

gravestone

-0.3

isolation

-15

Iron layers

-2.9

Roofing slate

-0.9

Rolled wire

-0.25

The prices on zinc layers imported from Russia and Ukraine increased in January (0.5 percent),

Prices on other building materials remained stable.

According to the State Statistics Committee, in January, the companies engaged in production of building materials in Azerbaijan produced goods worth 16.9 million manat, which is 1 percent less than in January 2011.

In January of 2012 about 98,100 tons of cement, 4,300 tons of construction gypsum, 46,700 tons of finished concrete were produced.

During the reporting period about ​​16,500 tons of asphalt, 4,400 cubic meters of prefabricated concrete constructions, 15,000 cubic meters of building bricks were produced.

By February 1, 2012 there were stocks of finished construction products worth 9.7 million manat at the warehouses of the enterprises, or 3.4 percent of the total finished product, available in the warehouses of the country.

Russian airline expanding route of flights in direction of Baku
Russian airline expanding route of flights in direction of Baku
Turkmenistan, Iran talk over increasing sea transportation in Caspian Sea
Turkmenistan, Iran talk over increasing sea transportation in Caspian Sea
Facilities to be put into operation at Iran's Ilam Airport
Facilities to be put into operation at Iran's Ilam Airport
Loading Bars
Latest
Georgian FM to pay official visit to Kyiv
Iran’s East Oil & Gas Production Company boosts gas extraction
Biggest share of Azerbaijan's GDP accounts for industry
Turkmenistan interested in expanding co-op with Russia’s Lipetsk region
Azerbaijani Armed Forces continue exercises, moving to operational areas (VIDEO)
Georgia sees increase in COVID-19 cases
Iran reveals COVID-19 data for May 16
Russian airline expanding route of flights in direction of Baku
Azerbaijan expected to approve another int'l document on migration issues
Iran government increases pensions
Retail trade indicators up in Kazakhstan
Physical volume of Kazakhstan’s GDP down in 1Q2021
Turkmenistan, Iran talk over increasing sea transportation in Caspian Sea
Ministry talks social benefits paid out to population in Azerbaijan since early 2021
GDP per capita increases in Azerbaijan
Azerbaijan discloses amount of trade surplus for 1Q2021
Azerbaijan creating industrial clusters to develop metallurgical industry
Facilities to be put into operation at Iran's Ilam Airport
Fitch Ratings shares forecast for Azerbaijan's 2021-2022 external public debt
Baku Higher Oil School hosts webinar ‘Women in Engineering: Challenges and Opportunities’ (PHOTO)
Batumi International Airport of Georgia receives first passenger flight after reconstruction
Azerbaijan's Azerishig to purchase metal structures
Russia reports 8,554 COVID-19 cases over the past day
New type power units at Uzbekistan’s Turakurgan TPP to increase electricity production
UAE airlines Etihad, flydubai cancel Tel Aviv flights
Kazakhstan's int'l reserves grow
Georgia introduces new requirements for registration of trucks, buses, and minibusses
Third oil loading berth for Turkmenistan’s Turkmenbashi oil refinery under construction
Monument to famous Azerbaijani singer to be soon installed in Baku (Exclusive) (PHOTO)
Value of coupon payments to investors in Azerbaijan soars - National Depositary Center
Uzbekistan reveals companies interested in construction of solar power plant in Surkhandarya region
Carbon neutrality in 2045 requires managing increasing quantities of decarbonized biogas
UK to make final lockdown easing decision on June 14
French company eyes to co-op with Uzbekistan in using new technologies in agriculture
Bollywood: Big B buys oxygen concentrators, donates ventilators
Germany to finance implementation of projects in Uzbekistan in several areas
Direct delivery of Uzbek export goods to Pakistan implemented through Afghanistan
Uzbekistan, Tajikistan eye increasing trade turnover
Airport in Uzbekistan opens tender for supply of towbar
Cargo movements in Iran’s Chabahar port down
Uzbek finance ministry becomes sole shareholder of Uzbekistan Railways
Uzbekistan eyes attracting Japanese companies for joint production of branded footwear
Airport in Uzbekistan to buy spares for vehicles via tender
Azerbaijan enhancing information security of banks
Weekly review of Turkmenistan’s exchange
Iran’s CBI discloses amount of currency sold at NIMA exchange rate
One of violators of Azerbaijan's state border arrested - Prosecutor General’s Office
Munitions found in Azerbaijan's Khojavand district
Tesla crash victim lauded 'full self-driving' in videos on Tiktok
Central Bank of Azerbaijan unveils volume of lending to government agencies
Azerbaijan sees increase in gold price
Azerbaijani cotton processing plant undergoing reconstruction
ACG oil transshipment from Ceyhan terminal exceeds 75 mb YTD
Azerbaijan demonstrates high growth rates in mobile infrastructure dev't - GSMA Association
Second Sputnik V shipment delivered in India
Israeli, Palestinian delegates to attend UN Security Council’s meeting on May 16
Kazakhstan increases imports of Switzerland-made goods
Georgian Nadi Group Ltd snail farm increases production
Georgia researching manufacturing of airplane parts and repair services
Georgian Dzuguri company to resume production of mineral water
Austria's 4M2021 import value of Turkish grains grows
Azerbaijan boosts import of Turkish-made chemicals
Uzbekistan, Dominica establish diplomatic relations
Turkey sees increase in exports of electrical goods to Georgia
Azerbaijani currency rates for May 16
U.S. fuel crisis eases as pipeline returns to normal after hack
Turkey sees increase in clothes exports to Germany
Iran to pass new water law bill
Uzbekistan reveals COVID-19 data for May 16
Iran to revive thousands of stagnant industrial units
Walmart to buy Israeli virtual fitting room co Zeekit
Azerbaijani Armed Forces begin training exercises
Iran increases wheat purchase guarantee rate
Volume of loans issued to Azerbaijan's public organizations decrease
Iran-Switzerland trade depends on JCPOA talks- official
Razi Co. among top three Iranian insurance companies - CEO
OPEN NET internet project to continue in Georgia - PM
It is Armenia that violates internationally recognized borders of Azerbaijan - MFA
Azerbaijan's 4M2021 inflation rate disclosed
Britain to treble tree planting by 2024 to fight climate change
Switzerland sees potential in strengthening co-op with Azerbaijan in energy field
Argentina's COVID-19 death toll exceeds 70,000
Israel hits Hamas politburo leader’s house in Gaza
Turkey registers 11,472 new COVID-19 cases
SpaceX launches rocket with 54 satellites
Brazil reports 2,087 more COVID-19 deaths
France hits target of 20 mln first COVID-19 vaccinations: PM
Air raid sirens go off, explosions heard in Tel Aviv
9 missing in Indonesia's boat accident
IS claims responsibility for Kabul mosque attack
More than 677,000 COVID-19 infections detected worldwide over past 24 hours
Chamber of Commerce hopes Iran's trade to improve as COVID-19 spread declines
Iran to hold conference on electrical engineering
Weekly review of Azerbaijani oil market
Uzbekistan to restore air communication with Saudi Arabia
Georgian Parliament Speaker to pay official visit to Brussels
Britain reports 2,027 new COVID-19 cases, seven deaths
Emergency session of OIC to be held on May 16 at Turkey’s initiative, Ankara says
Turkey aims to create electric vehicle market
Uzbekistan imported more than 200 million liters of gasoline in Jan-Apr 2021
All news