Review of Construction sector in Azerbaijan (Jan-Sept. 2014)

According to the Azerbaijani State Statistics Committee, the construction work totaling 5.984 billion AZN was conducted in Azerbaijan in January-September 2014. The volume of construction work increased by 3.8 percent compared to the same period of last year.

Some 63.9 percent of the total volume of construction work accounted for primary construction, reconstruction and expansion, 16.9 percent - overhaul, 5.7 percent - current repair and 13.5 percent - other construction work.

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

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

Jan.-Sept. 2014

Compared to Jan.-Sept. 2013

Hospitals

1459,3

96,2

Secondary schools, educational facilities

230

43,4

Pre-school educational institutions, facilities

24 812

97,8

Funds directed to fixed capital, in mln AZN

1 092

72,4

Including:
- for the construction of production facilities

11 868,5

100,2

- for the construction of facilities in service sector

8 093,9

121,1

- for construction and installation work

3774,6

73,1

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

8 678,6

108,5

Source: State Statistics Committee

In September, the volume of housing commissioning increased by 1.97 times compared to August 2014, but by 54.9 percent compared to September 2013.

According to the Azerbaijani State Statistics Committee, around 313,800 square meters of housing were commissioned in September compared to 159,060 square meters in August. Around 1.459 million square meters of housing were commissioned in 2014 or by 3.8 percent less than in 2013.

Housing market

According to MBA Group consulting company, the prices on Baku's real estate market in September increased by only 2.19 percent. The prices increased by 5.11 percent on the primary market in September but by 13.09 percent since early 2014. The prices reduced by 1.04 percent on the secondary market, but increased by 15.55 percent since early 2014.

The hundred part on the land market of Baku in September cost $18,271 or by 1.97 percent less than in August and 5.98 percent more than in early 2014. The average price on a square meter at commercial facilities has amounted to $4,114 last month, increasing by 6.66 percent during a month and 2.4 percent since early 2014.

The market activity was generated at the level of 13 percent. The prices hiked in February because of the stir associated with the demolition of houses on "Sovietskaya" street. Only 10-12 percent of the population of this territory bought 1-2-room apartments in the center. The rest settled in the suburbs. The market activity has fallen by almost 30 percent since that period. Only 12 of 100 proposed apartments per month are sold on the market.

The Central Bank of Azerbaijan said that the real estate market turnover increased by 24.51 percent in January-September from year to year. As of 2013, its growth was 40.9 percent compared to 2012. In 2012, it increased by 24.86 percent compared to 2011.

As of October 1, 2014, the real estate market turnover (cash turnover of the notary offices) amounted to 3.632 billion AZN compared to 2.917 billion AZN a year earlier.

The proceeds at the accounts of notary offices dealing with the purchase / sale of real estate amounted to 1.688 billion AZN compared to 1.379 billion AZN the previous year (+22.43 percent). Around 1.943 billion AZN were written-off from these accounts compared to 1.538 billion AZN (+26.39 percent).

At the same time, the Central Bank for the first time stressed a 60.69 percent increase in the share of mediators (banks, notaries and realtors) on residential real estate transactions from year to year. Its decline was 14 percent as of September 1.

As of October 1, 2014, the share of mediators was 254.972 million AZN compared to 158.672 million AZN a year earlier. The share of the banks' mortgage loans given the general involvement of mediators was 30.8 percent in January-September. The banks issued mortgage loans worth 78.6 million AZN compared to 82 million AZN a year earlier. The mortgage ensured only 4.04 percent of payments on real estate transactions in January-September.

Building material market

In Jan.-Sept. 2014, the companies engaged in building materials manufacturing in Azerbaijan, produced goods worth 328.5 million AZN, or 19.4 percent more than in the same period of 2013, according to the Azerbaijani State Statistics Committee's report for nine months. During this period, Azerbaijan produced 2.16 million metric tons of cement (a 38.4-percent increase versus the same period of 2013) and 143,100 metric tons of plaster (a 30.9-percent decrease), said the report.

Azerbaijan also produced 1.3 million metric tons of ready-mixed concrete (up by 25.1 percent), 290,300 metric tons of asphalt (a 4.1-percent decrease), 27,600 cubic meters of precast concrete building structures, 3.45 million metric tons of processed marble, travertine, alabaster and items made of them.

The volume of construction work in January-September 2014 amounted to 5.237 billion AZN.

Some 63.9 percent of the construction work accounted for new buildings, reconstruction and expansion, while 16.9 percent of work accounted for capital repairs, 5.7 percent - for the ongoing repairs and 13.5 percent - for other construction work.

Commercial facility market

The commercial facility market has not virtually worked this year, MBA Group consulting company said. The activity is very low. On the land market, it applies only to the cheap land plots worth $5,000-6,000 per hundred part. The transaction amount on expensive land plots greatly declined. The reason is that the real estate market is indirectly connected with the oil and gas sector.

The oil prices have recently reduced [about 20 percent from June to October]. The budgetary costs reduce respectively. People try to minimize their expenses. Thus, money supply decreases. If this trend continues in the future, there will be a decline in real estate prices by late 2014-early 2015.

The investors are not active in real estate area. In early summer, there was great interest in investing in the real estate sector. But today investors have a wait-and-see attitude as if observing the further events.

Iran to offer loans to support industrial production
Iran to offer loans to support industrial production
New apartments inagurated in Iran
New apartments inagurated in Iran
Iran’s Bahar Azadi gold coin price rebounds
Iran’s Bahar Azadi gold coin price rebounds
Loading Bars
Latest
Kazakhstan, Romania trade turnover increases despite COVID-19
State border between Azerbaijan and Iran fully secured - President Ilham Aliyev
Azerbaijani army liberates more villages from Armenian occupation in Fuzuli, Jabrayil
Azerbaijani army liberates 13 villages, Agbend settlement - Azerbaijani president
Russia continues to make active efforts to resolve Karabakh conflict - MFA
OIC Parliamentary Union condemns Armenia's attack on Azerbaijan's Ganja
Azerbaijani RabitaBank's assets for 9M2020 grow
Morocco decreases import of Turkish cars
Uzbekistan, Afghanistan to jointly attract funds for transport corridors dev’t in Central Asia
Uzbekistan, Tajikistan agree on resumption of flights
Armenia's tries to present its position as "peaceful" - total nonsense, Azerbaijan says
Iran to offer loans to support industrial production
Isbank Georgia talks about its cooperation with IFC
Restoration of territorial integrity of Azerbaijan - undoubtedly legitimate process - Georgian expert
Adidas plans to sell ailing Reebok business within months
Cargo transportation between Uzbekistan, Afghanistan grows despite decline in int'l trade
Export of cars from Turkey to France down
Yerevan's foreign policy only possible if Armenia accepts it needs to make peace with Azerbaijan - Svante Cornell
Turkish Trade Ministry says export of domestic cars to China up
Georgia sees increase in price of medicines
Turkmenistan’s geographic location offers potential for country’s economy, says US Embassy in Turkmenistan
Azerbaijan Rabitabank’s net profit for 9M2020 revealed
National Bank of Georgia takes another steps to stabilize lari exchange rate
Procedure for calculating total amount of insurance premiums approved in Azerbaijan
Turkey's export of cars to US edge lower
Karabakh hostilities cause direct disruption to health care amid COVID-19 - WHO
Import of Turkish cars by Azerbaijan declines
Yerevan must withdraw troops, mercenaries and terrorists from Azerbaijan - Turkish Defense Minister
Azerbaijan reveals data on imports for 9M2020
Germany's nine-month import of cars from Turkey down
Apples emerging as export crop for second year in Georgia
Azerbaijan reveals 9M2020 trade turnover volumes with major partners
Nagif Hamzayev: Azerbaijan writes new pages in the world military history
Turkey's 9M2020 export of jewelry to Ukraine doubles
Azerbaijani artillerymen continue to make precise strikes at firing points of Armenian armed forces (VIDEO)
Tender: Khazar Consortium to buy materials for smooth operation of oil field facilities
Int'l organizations miscalculate military arsenal of Armenia - MP
Turkmengas opens tender for purchase of equipment
Uzbekistan’s 9M2020 export volume of fruits, vegetables revealed
MagtiCom leads with highest ARPU rate in Georgia
New apartments inagurated in Iran
Azerbaijan's overall exports for 9M2020 unveiled
Kazakhstan to increase electric vehicles manufacturing by 2022
CO2 emissions prevented in Kazakhstan as renewable energy projects launched
Revenues of mobile operators in Georgia down
Uzbekneftegaz launches condensate stabilization unit at Uzbek oil field
Azerbaijani Embassy in Russia clarifying issue on prohibiting Azerbaijani citizens to use Pobeda Airlines' services
Uzbekistan launches mineral-based engine oil production
Trend News Agency's editor-in-chief tells CNN Turk about ongoing tension in Karabakh (PHOTO/VIDEO)
Russia almost halves jewelry imports from Turkey
Azerbaijan’s AzerGold taking measures on legal assessment of illegal mining in occupied territories
Azerbaijan starts reconstructing roads leading to liberated villages of Tartar (PHOTOS)
Georgian Caucasus Auto Import adds new export markets
USAID promotes warehouse digitization of Turkmen logistics company
Uzbekistan eyes to increase cars export by 4Q2020
Uzbekistan’s private business actively involved in agriculture digitalization
Sanctions must be imposed on Armenia, says Lebanese legal expert
Attacking civilians unacceptable, Israeli ambassador says
Armenia opens additional flights to transfer volunteers to Karabakh (PHOTO)
Number of people infected with COVID-19 pandemic in Iran exceeds 550,000
Azerbaijan's president says Armenia receiving external help, including mercenaries, weaponry
Your statements every evening about how many villages, cities have been liberated from occupation bring joy to people all over Turkey - Turkish Chief Ombudsman
Azerbaijan confirms 171 more COVID-19 recoveries
Turkmenistan's import of Turkish jewelry surges
Value of Azerbaijan's goods export by road edges down
Those unwilling to fight in Armenia buy positive coronavirus test at $1,000-2,000
There is not single surviving building in liberated cities, in these villages, in most of them - Azerbaijani president
Media of many countries unilaterally side with Armenia - President Aliyev
Israel's ambassador to Azerbaijan visits Ganja, witnesses damages following Armenia's attack (PHOTO)
We have never taken and will never take any action against civilians, says Azerbaijani president
By breaking back of Armenian fascism, we save our region from great tragedies - President Aliyev
Iran’s Bahar Azadi gold coin price rebounds
Georgia, Japan sign double taxation avoidance agreement
Volume of investments to be made to Iran's Khuzestan Province growing
Auto sales drop on Georgian market
Gasoline demand to decline from 2030
Volume of cargo freight via Azerbaijani ports continues to grow
Turkmenistan forecasts total revenues, expenditures of country's financial plan for 2021
EBRD supports refurbishment of wastewater facilities in Kazakhstan's Shymkent
COVID-19 may accelerate downward trends in oil consumption of developed economies
Uzbekistan boosts jewelry import from Turkey
Azerbaijani Central Bank unveils amount of foreign currency sold to local banks
Oil demand has yet to peak for two key reasons
Karabakh conflict should be settled on issues of boundary lines, sovereignty issues - US Ambassador to NATO
Armenians fire at Azerbaijan’s Gabala and Kurdamir cities by using Elbrus ballistic missiles (PHOTO)
Azerbaijan-Russia strategic partnership to reach high level
'NATO not part of Karabakh conflict', Stoltenberg tells Armenia
Azerbaijan shows video footage of captured military equipment of Armenian Armed Forces (VIDEO)
Gold, silver prices in Azerbaijan down
Armenian servicemen refusing to fight, says Azerbaijani MoD
National Bank of Georgia talks about 3 key challenges in financial sector
Armenia must leave occupied Azerbaijani lands, says Turkish president's aide
Uzbekistan to increase electricity supply to Afghanistan
Civilian wounded from Armenian Armed Forces' missile attack on Azerbaijan's Gabala
Turkmenistan to take measures to increase volume of domestic production
Russian businessmen intend to expand their activities in Azerbaijan
Georgia's gov't places funds on term deposits at commercial banks
Turkish export of jewelry to Kyrgyzstan decreases
Gold producing plant to introduce environment preserving technology in Kazakhstan's Zhambyl
Pashinyan's Facebook post on "shortcut to victory" ridiculed by Arab readers (PHOTOS)
All news