Review of construction sector in Azerbaijan (January-July 2017)
Most of construction work accounted for primary construction, reconstruction and expansion in January-July 2017, the Azerbaijani State Statistics Committee said.
Some 67.2 percent of the total volume of construction work accounted for primary construction, reconstruction and expansion, 10.1 percent - overhaul, 4.5 percent - current repair and 18.2 percent - other construction work.
Some 86.9 percent of the total volume of construction work was carried out by non-state construction companies.
Some 973,700 square meters of housing were commissioned in Azerbaijan in January-July 2017, which is by 9.6 percent more than in the same period of 2016.
Some 135,600 square meters of housing were commissioned in Azerbaijan in July 2017.
The capital investments in housing construction amounted to 458.6 million manat (a 32.2 percent increase) in January-July 2017, including 76.4 million manat in July.
Real estate market
According to the MBA Group consulting company, the prices in Baku’s real estate market decreased by 3.54 percent in July 2017.
During the month, prices decreased in all market segments.
The price per square meter of secondary housing decreased by 4.29 percent, square meter of primary housing - by 4.94 percent, commercial facilities for rent – by 1.67 percent per square meter in July.
At the same time, the price of a hundred square meters of land decreased by 1.46 percent in July.
The price per square meter of commercial facilities decreased by 6.89 percent, while rental housing - by 1.98 percent.
The prices in the market decreased by 10.75 percent in January-July 2017 compared to January-July 2016.
The prices increased in the primary housing market, market of commercial facilities and land market. The prices decreased in the rest segments of the market for the year.
Thus, the prices in the primary housing market increased by 16.46 percent, land price - by 5.2 percent, prices on commercial facilities by 17.48 percent.
Thus, the prices in the secondary housing market decreased by 2.55 percent, rental housing and commercial facilities for rent - by 5.65 percent and 10.24 percent respectively.
This decline in the market is seasonal and the situation will change by the end of September. The summer months are a period of decline in demand and supply in the market. During these months, transactions on the market are always suspended. But, as experience shows, the situation will change in autumn.
The prices in the real estate market may increase by ten percent in 2017.
The prices in Baku’s real estate market in dollar terms decreased by 31.53 percent in 2016.
Construction material market
According to the Azerbaijani State Statistics Committee, the construction materials worth 297.3 million manat were produced in January-July 2017, which is by 38.3 percent more than in January-July 2016.
Cement production increased by 24.1 percent up to 1,577.6 tons, ready-mixed concrete – by 34.3 percent up to 376,200 tons, prefabricated concrete structures – by threefold up to 109,900 tons.
The production of bricks increased by 40.3 percent up to 160,200 cubic meters, processed marble, travertine, alabaster and items made of them – by 3.1 times up to 9,717.8 tons, building blocks and cement bricks, artificial stone bricks or concrete bricks – 54.5 percent up to 75,181.7 tons in January-July 2017.
The production of gypsum plaster decreased by 28.1 percent up to 54,100 tons, asphalt - by 63.5 percent up to 94,800 tons, construction lime – by 13.8 percent up to 13,353 tons, the report said.