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Review of construction sector in Azerbaijan (january-june 2017)

Analysis Materials 16 August 2017 11:02 (UTC +04:00)

Most of construction work accounted for primary construction, reconstruction and expansion in January-June 2017, the Azerbaijani State Statistics Committee said.

Some 67.5 percent of the total volume of construction work accounted for primary construction, reconstruction and expansion, 10.5 percent - overhaul, 4.2 percent - current repair and 17.8 percent - other construction work.

Some 87.0 percent of the total volume of construction work was carried out by non-state construction companies.

Some 838,100 square meters of housing were commissioned in Azerbaijan in January-June 2017, which is by 9.2 percent more than in the same period of 2016.

Some 208,400 square meters of housing were commissioned in Azerbaijan in June 2017.

The capital investments in housing construction amounted to 382.2 million manat (a 37.2 percent increase) in January-June 2017, including 87.9 million manat in June.

Real estate market

According to the MBA Group consulting company, the prices in Baku’s real estate market decreased by 0.59 percent in June 2017.

During the month, prices on land, commercial facilities and rental housing increased, while prices on secondary and primary housing, commercial facilities for rent decreased.

The price per square meter of secondary housing decreased from 1,737 manat to 1,614 manat (by 7.24 percent), square meter of primary housing - from 1,452 manat to 1,432 manat (by 1.41 percent), commercial facilities for rent - from 13.77 manat to 13.57 manat per square meter in June.

At the same time, the price of a hundred square meters of land was 20,118 manat, which is by 0.7 percent (20,105 manat) more than in May.

The price per square meter of commercial facilities increased by 4.89 percent (from 2,926 manat to 3,069 manat), while rental housing increased by 0.96 percent - from 8.83 manat to 8.92 manat per square meter.

The prices in the market increased by 0.56 percent since early 2017, although the prices decreased in some segments of the market.

Thus, the prices in the primary housing market and secondary housing market decreased by 5.12 percent and 9.45 percent respectively, land price - by 4.52 percent, prices on commercial facilities by 19.91 percent, rental housing and commercial facilities for rent by 14.76 and 19.91 percent respectively.

The prices in the real estate market slightly decreased by 7.4 percent in June 2017 compared to June 2016.

During the year, the prices increased in the primary housing market, secondary housing market and land market. The prices decreased in other segments of the market.

The prices in the primary housing market increased by 23.27 percent for the year, secondary housing - by 1.91 percent, land market - by 8.83 percent.

The prices in the market of commercial facilities decreased by 17.4 percent, while prices on rental housing and commercial facilities for rent decreased by 8.58 and 4.67 percent, respectively, in June 2017 compared to June 2016.

Construction material market

According to the Azerbaijani State Statistics Committee, the construction materials worth 228.2 million manat were produced in January-June 2017, which is by 38.5 percent more than in January-June 2016.

Cement production increased by 23 percent up to 1,289.6 tons, the production of building lime – by 25.7 percent up to 286,600 tons, ready-mixed concrete – by threefold up to 88,300 tons.

The production of bricks increased by 44.7 percent up to 135,000 cubic meters, processed marble, travertine, alabaster and items made of them – by 2.9 times up to 6,362.1 tons.

The production of gypsum plaster decreased by 17.3 percent up to 47,600 tons, asphalt - by 61.8 percent up to 91,000 tons, construction lime – by 17.8 percent up to 10,965.6 tons, building blocks and cement bricks, artificial stone bricks or concrete bricks – 1.5 percent up to 35,448.3 tons in January-June 2017, the report said.

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