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

Some 66.5 percent of the total volume of construction work accounted for primary construction, reconstruction and expansion, 10.0 percent - overhaul, 4.6 percent - current repair and 18.9 percent - other construction work.

Some 86.3 percent of the total volume of construction work was carried out by non-state construction companies.

Some 1,117.2 square meters of housing were commissioned in Azerbaijan in January-August 2017, which is by 10.5 percent more than in the same period of 2016.

Some 143,500 square meters of housing were commissioned in Azerbaijan in August 2017.

The capital investments in housing construction amounted to 527.1 million manat (a 36.4 percent increase) in January-August 2017, including 68.5 million manat in August.

Real estate market

According to the MBA Group consulting company, the prices in Baku’s real estate market decreased by 0.75 percent in August 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 reached 1,570 manat in August, which is by 1.65 percent more than in July. The price per square meter of primary housing decreased by 2 percent and reached 1,334 manat.

The average rental housing price was 760 manat in Baku in August, which is by 10.4 percent more than in late July.

The prices in land market in August increased by only 0.21 percent. The average price for a hundred square meters of land was 19,866 manat, which shows the relative stability in the land market.

According to the company, prices in the market of commercial facilities decreased in August.

Thus, the average price per square meter of commercial facilities was 2.744 manat, which is by 3.99 percent less than in the previous month, while the rent of commercial facilities decreased by 3.39 percent. The average price per square meter of commercial facilities was 12.1 manat.

The prices in the real estate market slightly decreased by 9.82 percent in August 2017 compared to the same period of 2016.

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

The prices in the secondary housing market increased by 12.04 percent, rental housing - by 15.08 percent, land market - by 0.56 percent for the year.

In August 2017 the prices in the market of commercial facilities decreased by 29.2 percent, while prices in primary housing and rental commercial facilities decreased by 10.2 percent and 15.73 percent respectively compared to August 2016.

Price reduction in the market is a seasonal phenomenon. The situation can change in autumn.

Usually in autumn, the prices slightly increase. This trend will continue this year and the prices in the market will increase by 4 percent in autumn.

In 2017, the prices in the real estate market may increase by 10 percent, which can contribute to the gradual adaptation of the population to the current situation and the restoration of the activity of the Azerbaijan Mortgage Fund (AMF).

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 360.3 million manat were produced in January-August 2017, which is by 32.6 percent more than in January-August 2016.

Cement production increased by 22.8 percent up to 1,854.2 tons, ready-mixed concrete – by 39.6 percent up to 435,900 tons, prefabricated concrete structures – by 2.3 times up to 121,300 cubic meters.

The production of bricks increased by 38.8 percent up to 181,300 cubic meters, processed marble, travertine, alabaster and its items – by 2.9 times up to 12,579.2 tons, building blocks and cement bricks, artificial stone bricks or concrete bricks – 54.2 percent up to 89,786.4 tons.

The production of gypsum plaster decreased by 30.1 percent up to 63,700 tons, asphalt - by 60.4 percent up to 108,900 tons, construction lime – by 9.2 percent up to 16,112.2 tons in January-August 2017.