Review of construction sector in Azerbaijan (january-april 2013)

Analysis of development trends in the construction industry of Azerbaijan allows evaluation of the enormous potential of the industry. According to the Ministry of Economic Development, housing stock in Azerbaijan has increased by 30 percent over the past 20 years.

According to the Azerbaijani State Statistics Committee, the volume of construction work in Azerbaijan increased by 22.2 percent in January-April 2013 compared to the same period of last year.

Some 68.5 percent of the total volume of construction work fell to the primary construction, reconstruction and expansion, 17 percent - overhaul, 2.6 percent - current repair, 11.9 percent - other construction work.

In particular, the volume of construction work carried out by private companies hit 78 percent.

Main indicators of construction sector in Azerbaijan in January-April 2013

January-April 2013

Compared to January-April 2012

Commissioned: residential buildings, total area, sq. m

509.0

116.8

Clinics and health centers

130

-

Secondary schools, educational facilities

2458

-

Pre-school educational institutions, facilities

317

-

Clubs

584

4.2 раз

Funds directed to fixed capital, in mln manat

4252.7

128.4

Including:
- for the construction of production facilities

2289.1

138.0

- for the construction of facilities in service sector

1963.6

118.9

- for construction and installation works

2683.4

140.9

Source: State Statistics Committee

Construction of 100 new industrial plants was completed in Azerbaijan in 2013, and some 90 enterprises are currently under construction.

In April 2013, housing commissioning in Azerbaijan increased by 10.9 percent compared to March. According to the State Statistics Committee, 138,300 square meters of housing was commissioned in April 2013 compared to 124,700 square meters in March of this year and 104,900 square meters in April 2012.

In January-April 2013, 509,000 square meters of housing was commissioned, or 16.8 percent more than in the same period of 2012 (435,900 square meters).

Building materials

According to the State Statistics Committee, in January-April 2013, enterprises involved in the production of building materials in Azerbaijan produced goods worth 105.1 million manat, or 25.5 percent more than in the same period of 2012.

In January-April 2013, enterprises produced 565,200 tons of cement (a 6.3 percent growth), 62,200 tons of plaster (2.4-fold increase) and 395,500 tons of ready-mixed concrete (a 8.3 percent growth).

As of May 1, 2013, the warehouses of enterprises had stocks of finished construction products worth 16.7 million manat, which accounts for 5.9 percent of all finished products available in the warehouses of the country.

According to the Property Market Participants Public Association (PMP), in April, the market prices for building materials decreased by 2.61 percent compared to the previous month. Compared with the beginning of the year, the average price rose by 0.2 percent, while a 3.3 percent decrease was observed in comparison with the same period of 2011.

The share of domestic products in the total volume of construction materials stood at 53.4 percent.

Monitoring was conducted on 37 items and 87 kinds of building materials.

According to the report, a significant decline in prices affected imported materials. Thus, the cost Ukrainian armature was 760 manat per cubic meter (compared to 790 manat in March 2013). Timber also fell in price - the cost of a cubic meter decreased by 2.1 percent to 230 manat in April (235 manat in March 2013). The largest price decrease was recorded for glass products of Iran.

The summary table demonstrates the decline in prices for some building materials in April:

Type of material

Unit

Quantity

Dynamics of prices,%

1.

Wood

cbm

1

-2.1

2.

Dict

piece

1

-0.4

3.

Fibreboard

piece

1

-0.7

4.

Armature

ton

1

-3.3

5.

Channel bar

meter

1

-0.4

6.

Steel pipe

meter

1

-1.2

7.

Sheet zinc

piece

1

-3.4

8.

Glass

square meter

1

-13.5

9.

Laminate-flooring

square meter

1

-6.2

Primary housing market

According to the Property Market Participants Public Association, in April, prices for primary housing market in Baku rose compared to the previous month by 0.8 percent to 864.3 manat per square meter.

Prices rose by 2.9 percent compared to the previous quarter, and by 5.4 percent compared to the same period last year.

Compared with the peak crisis period (September 2008) on the world financial markets, housing prices in Baku fell by 27.6 percent (at the time the cost per square meter was 1,194 manat).

In April, the number of new buildings proposed on the market increased by one unit and totaled 401. The number of construction companies decreased by one and totaled 134.

Secondary housing market

According to the Property Market Participants Public Organization, in April, the average cost for secondary housing increased by 0.7 percent compared to the previous month and amounted to $ 1,211 per square meter.

In April, supply on the secondary housing market declined by 3.7 percent. The number of apartments offered for sale decreased to 5,400.

The share of Yasamal, Nasimi, Narimanov and Khatai districts in overall supply portfolio was 78.7 percent. Formation of a portfolio at the expense of these four areas for a long time has been associated with the entry into the market of new buildings in these areas. Studies show that the primary market portfolio of supply is formed mainly by these four districts.

The proportion of secondary residences proposed on the market at a price lower than the average amounted to 53.1 percent. The average room rate on the secondary market in July was 2.79, the average price of each room - $46472 and of an apartment - $113,162.

The dynamics of bargaining for the sale of second homes has increased over the month by 1.5 percent.

The dynamics of deals for the sale and purchase of secondary homes has increased over the month by 1.5 percent.

Prices for apartments in Baku

Prices are shown as of April 2013.

Location

Price
1 sq.m/$

Nasimi bazar

1390

"Sharq bazari"

1195

"Teze bazar"

1397

Yasamal bazar

1282

Akhundov garden

1898

Zorge garden

1369

Molokan garden

2540

Samad Vurgun park

1754

Badamdar settlement

1137

Bail settlement

1153

Bakikhanov settlement

1026

Balajari settlement

1137

Bina settlement

729

Buzovna settlement

806

Vorovski settlement

1574

Garachukhur settlement

1030

Darnagul settlement

849

Zabrat settlement

718

Zikh settlement

1007

Yasamal settlement

1172

New yasamal settlement

823

Yeni Guneshli settlement

967

20-th sector settlement

869

Keshla settlement

1093

Kohne Guneshli settlement

1033

Lokbatan settlement

828

Montin settlement

1365

Mushfiq settlement

629

Rasulzade settlement

1134

Sabunchi settlement

1009

Sakhil settlement

866

Surakhani settlement

1010

Khirdalan

862

A. Aslanov settlement

856

Hovsan settlement

814

Ahmedli settlement

859

Near zoo

1478

Baku cinema

956

Qalaba cinema

1073

Drujba cinema

1272

Azerbaijan cinema

2375

Nizami cinema

2179

G.Z. Taghieyv industrial complex

1029

Neapol area

942

Ukraine area

1055

May 28 street

1732

A. Neymat street

1344

Bakikhanov street

1578

D. Aliyeva street

1488

Z. Bunyatov prospect

1066

Z. Khalilov prospect

1469

Hasan Aliyev prospect

1253

Istiglaliyat street

1965

M. Qashqai street

1277

M. Khadi street

922

Mehmandarov street

929

N. Tusi street

874

Nakhchivan street

1239

Nizami street

2298

Nizami street (Torgovaya)

2566

R. Behbudov street

1856

S. Vurgun street

1599

Tebriz strret

1269

Fizuli street

1807

Khagani street

1989

U. Hajibayov street

1459

Shikhlinski street

985

Z. Aliyeva street

1967

J. Hajabayli street

1625

E. Alakbarov street

1567

Sharifzade street

1179

"January 20" metro station

1309

"May 28" metro station

1837

"Icherisheher" metro station

2109

"Gara Garayev" metro station

1201

"Elmler Akademiyasi" metro station

1418

"Inshaatchilar" metro station

1278

"Memar Ajemi" metro station

1296

"Neftchiler" metro station

1284

"Nizami" metro station

1528

"N. Narimanov" metro station

1509

"Sahil" metro station

2321

"Khalglar dostlugu" metro station

1128

"Khatai" metro station

1247

"A.Aslanov" metro station

1015

"Ganjlik" metro station

1562

"Akhmedli" metro station

1113

1-st micro-region

1087

2-nd micro-region

1055

3-rd micro-region

1168

4-th micro-region

1159

5- th micro-region

1113

6- th micro-region

1066

7- th micro-region

1090

8- th micro-region

1277

9- th micro-region

1069

Icherisheher

2115

Europe hotel

1308

"Hyаtt Rеgеncy" hotel

1310

U.S embassy

1399

Russian embassy

1458

Azadliq prospect

1389

Azerbaijan prospect

2079

Ataturk prospect

1399

Babak prospect

1197

Bulbul prospect

2208

Inshaatchilar prospect

1249

H. Aliyev prospect

1395

Metbuat prospect

1196

Neftchilar prospect

2110

Narimanov prospect

1396

Parliament prospect

1872

Tbilisi prospect

1229

F. H. Hoyski propect

1308

H. Javid prospect

1492

Ganja prospect

956

Novel prospect

855

A. Sultanova monument

1289

K. Marx monument

1244

N. Narimanov monument

1465

School No20

1581

Airline cash desk

1349

Azneft area

2167

"Beshmertebe"

1890

Central universal department store

1910

H. Aliyev palace

1621

Olimp store

1374

Fountain square

2487

Hospital No5

1293

8 kilometer settlement

1130

Javanshir bridge

1345

Narimanov district court

1326

Azerbaijani drama

1775

Statistics committee

1477

Medical university

1393

Radio works

1023

Khazar department store

1041

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