Review of construction sector in Azerbaijan (January-March 2014)

According to the Azerbaijani State Statistical Committee, the construction work totaling 1.603.5 billion manat was conducted in Azerbaijan in January-March 2014. The volume of construction work increased by 6.5 percent compared to the same period of 2013.

Some 65.2 percent of the total volume of construction work accounted for primary construction, reconstruction and expansion, 18.6 percent - overhaul, 2.4 percent - current repair and 13.8 percent - other construction work. Some 80.1 percent of the construction work was carried out by non-state construction companies.

Main indices of construction sector in Azerbaijan in January-March 2014

January-March 2014

Compared to January-March 2013

Commissioned: residential buildings, total area, thousand sq. m

373,6

100,8

Hospitals

200

-

Secondary schools, educational facilities

1820

76,5

Pre-school educational institutions, facilities

390

123,0

Funds directed to fixed capital, in mln manat

3125,9

107,0

Including:
- for the construction of production facilities

2189,5

124,8

- for the construction of facilities in service sector

936,4

80,2

- for construction and installation work

2106,8

125,4

Source: State Statistics Committee

The construction market restoration started in March like in 2013 when commissioning of housing exceeded two million square meters per year in Azerbaijan for the first time in the history. Commissioning of housing increased by 47.2 percent in March compared to February.

Around 150,700 square meters of housing were commissioned in March compared to 102,400 square meters in February. Some 373,600 square meters of housing were commissioned in 2014 which is by 0.8 percent less compared to the same period of 2013 (370,700 square meters).

The expected growth in property prices will hit 8-10 percent in Baku during the year. According to MBA Group consulting company's forecasts, the rise in prices will continue in the long term and will continue until 2018. The practice shows that the market prices increase by an average of 8-12 years, followed by a period of decline (within 3-5 years). Another reason is the continued growth in the income of the population investing in real estate. The combination of these and other factors determines the growth in housing prices and gives reason to believe that this trend will continue.

Russian investors still show their interest in the real estate market (most of these investors are compatriots living in this country).

The flow of proposals from Russian investors was huge three or four years ago, but then fell sharply. This year, we have been observing Russian investors' restored interest in Baku's property though not so great as last year.

Secondary housing market

According to MBA Group consulting company, the prices increased by 2.01 percent on Baku's secondary market in March. As of March, the cost per square meter of secondary housing in the capital amounted to $2,032. As for the primary market, the square meter of such housing increased by 2.54 percent during the month and cost $1,213.

The expansion of demolition operations carried out in the capital affected the rise in prices. Primarily, a large number of buyers appear on the market as far as the demolition operations increase. The demand is also increased. Thus, the dynamics of prices is being changed.

In particular, this concerns the Absheron and Garadagh districts of Baku, where a lot of housing is being built. If one talks about the activity of buyers, the sales are mainly concentrated in the Absheron district and Yeni Yasamal settlement.

Primary housing market

The growth rate of prices on the housing market is more than the prices on the real estate market by almost one percent in January-March 2014. According to MBA Group consulting company, the common market prices increased by 10.45 percent in the first quarter.

The prices on the housing market increased by 11.28 percent, in particular, on the primary housing market - by 5.85 percent. The rise in prices observed for the last three years led to a decline in the market activity. The activity on the primary housing market increased by 0.45 percent in March compared to February, but it fell by 9.33 percent compared to the same period of 2013.

Commercial housing market

According to Azerbaijan Property Solutions consulting company, rendering the services in the commercial and trade real estate, the volume of office area will increase by 13.97 percent or 56,400 square meters in Baku.

As of late 2013, there were 404,000 square meters of quality office area in Baku. Seven office buildings with a total rentable area of ​​approximately 140,000 square meters were commissioned in 2013. More than half of the buildings, commissioned in 2013, are located in the coastal zone of Baku. This coincides with the general trend in demand. The tenants are often willing to take offices along the Seaside Boulevard or on adjacent territory.

The vacant area level (Class A) hits 24 percent; Class B - 15.4 percent, the specialists of the company said. The office area market intensified in 2013, and the supply outstrips demand in all classes.

Some 120,000 square meters of the office area volume fall to class A. Despite the significant increase in office area in 2013, the level of rental rates in the A and B business centers was not changed. The exposure period of office area increased by 50 percent and reached 12 months.

North Tower in Port Baku complex rented by British Petroleum Azerbaijan was the largest transaction on Baku's office market in 2013, the report said. The contract area volume hit about 19,000 square meters. The average base rental rate for Class A office areas excluding VAT and operating expenses is 489 manat per square meter per year, while 280 manat in Class B.

Armenia violates ceasefire with Azerbaijan 23 times
Armenia violates ceasefire with Azerbaijan 23 times
Armenian PM infected with coronavirus
Armenian PM infected with coronavirus
Armenia violates ceasefire with Azerbaijan 23 times
Armenia violates ceasefire with Azerbaijan 23 times
Loading Bars
Latest
President of Association of Turkish Travel Agencies talks partnership with Uzbekistan
Road infrastructure of Tashkent to be upgraded
Azerbaijan's ADY Container boosts railroad transit volumes
Turkmenistan reaches new agreements with Russia's Tatarstan
Cargo transshipment through Turkish Iskenderun port unveiled
Steel export from Turkey to int'l markets drops
Kazakhstan-Spain trade down twofold in 1Q2020
Russia's coronavirus infections near 450,000
Turkey discloses info on cargo shipment via its Bandirma port
Turkish cement export to int'l markets on decline
Turkey reveals data on cargo movement through its Gemlik port
Kazakhstan's Air Astana modifying its planes to transport cargo
Azerbaijani-Chinese joint venture to expand export geography
Russia says OPEC+ meeting to be held on Saturday
Singapore reports 261 new coronavirus cases, smallest rise in two months
Prices of Azerbaijani oil change
Kazakhstan's KazMunayGas to give up its subsidiaries to shareholder
Turkmenistan, Italian Eni discuss co-op in fuel & energy sector
Kazakh national postal service operator opens tender for vehicle repair
Some museums, exhibition halls in Baku on lockdown due to tightened quarantine
Minister: Georgia's economy to start growing from 2021
Kazakhstan eyes turning its household waste into electricity
Georgian Nectar company plans to increase juice exports
Enrique Mora: EU ready to support Azerbaijan in eliminating COVID-19 consequences (PHOTO)
US commits funds to support Georgia’s COVID-19 response
Georgia joins world leaders in global vaccine summit
Russian MFA: Optimism remains over settlement of Karabakh conflict
Georgia reports 4 new COVID-19 confirmed cases
French Europcar Mobility Group has exclusive representative company in Georgia
New power plants in Iran's Bushehr Province to help boost shrimp production
Azercell “Telegram Bot” – your new guide in digital world!
CISCO talks 'Smart City' system benefits in Azerbaijan
Google remains most used search engine in Azerbaijan, Yandex follows
Uzbek gov't sells state share in Kafolat Insurance to Uzbek IT company
Gold prices grow in Azerbaijan on June 5
Azerbaijani currency rates for June 5
Amount of payment cards in Azerbaijan grows
Armenia violates ceasefire with Azerbaijan 25 times
Uzbekistan reports 91 new COVID-19 cases
Federal Foreign Office: Germany supports efforts for peaceful solution of Karabakh conflict
Turkmen farmers hope for rich potato harvest in current season
Oil edges higher as traders eye producer talks on extending supply cuts
Thailand reports one new coronavirus cases, no new deaths
France, Germany back European cloud computing 'moonshot'
Oman to establish investment body to manage sovereign wealth funds
Portugese PM announces plan to ease economic blow from COVID-19
Sweden to lift domestic travel restrictions, but remain cautious
New York's Cuomo, concerned about COVID-19 spread, asks protesters to get tested
Germany will require all petrol stations to provide electric car charging
Somalia set to resume domestic flights
Around 5.2 pct of Spanish population infected by coronavirus: study
Albanian parliament OKs 650-mln-euro Eurobond
Jordan to open most economic sectors, further ease movement restrictions
Vaccines group raises $8.8 billion for immunisation plans for poor countries
OPEC+ has encouraging signs of rising conformity, says Barkindo
Eni creates two new business groups
Barkindo: 2020 oil demand to return to levels before 2014-2016 market downturn
IFC co-ops with Uzbekistan on planning of future projects
20-odd airlines to resume flights to and from Cyprus
India pledges 15 million USD to international vaccine alliance
Baku expected to hold European Championships in Men's and Women’s Artistic Gymnastics in late 2020
UN Office on Drugs and Crime, Turkmenistan discuss joint projects
Demand from banks at foreign exchange auction decreases in Azerbaijan
Georgia takes steps to foster development of local businesses
Turkey plans to resume flights with Azerbaijan soon
WHO mission to visit Turkmenistan
Cashless transactions in Azerbaijan on rise from Mar. through Apr. 2020
GNERC reveals market share of Georgian mobile operators
Representatives of diplomatic corps in Azerbaijan may work on weekends
GNERC reveals number of mobile subscribers in Georgia
Online payments grow in Kazakhstan
Global expenditures of oil & gas exploration to decline
COVID-related economic consequences to test Kazakhstan insurers' resilience
TABIB: Decision, rules related to international flights to be announced soon in Azerbaijan
Turkey's export of electrical goods from Jan. through May 2020 drops
11 insurers increase payment of insurance claims in Azerbaijan
Azerbaijani Operational Headquarters: Domestic flights may be renewed in coming days
Android OS ranks first in Azerbaijani market albeit with lower percentage
Uzbekistan's Ministry of Energy, EBRD developing low carbon energy strategy
Georgia implements new agricultural project
Azerbaijan's Elektrogas LLC unveils plans on manufacturing combi devices
Azerbaijan records multi-fold increase in online sales amid COVID-19
Kazakhstan's state commission to prepare strategic development plan till 2025
TABIB recommends journalists, other employees of news agencies in Azerbaijan to work from home
Georgia records over 150 cases of illegal logging
12 insurance companies reduced collection of premiums in Azerbaijan in April 2020
Kazakhstan's Agrarian Credit Corporation makes decision on dividend payments
Turkish ministry discloses volume of crude oil transshipped via local ports
All pharmacies, stores to be closed in some Azerbaijan's cities on weekend
Two-three-day restrictions may be introduced during following weekends in Azerbaijan
German auto stimulus to boost VW's electric push
Russia's Eximbank opens correspondent accounts for Uzbek banks
Georgia works with foreign experts on post-crisis economic plan
TAP announces changes in market test schedule
Production volume, cost of panel radiators in Azerbaijan announced
Nine Azerbaijani insurers increase collection of premiums in April 2020
Azerbaijan's Elektrogas talks opening of plant for manufacturing heating equipment
Uzbekistan reveals data on future projects in Syrdarya region
Data on naphtha shipment via Turkish ports from Jan. through Apr. 2020 revealed
Azerbaijan reports 262 new COVID-19 cases
All news