Most of construction work accounted for primary construction, reconstruction and expansion in January-September 2017, the Azerbaijani State Statistics Committee said.
Some 64.1 percent of the total volume of construction work accounted for primary construction, reconstruction and expansion, 9.6 percent - overhaul, 4.5 percent - current repair and 21.8 percent - other construction work.
Some 86.3 percent of the total volume of construction work was carried out by non-state construction companies.
Some 1,263 square meters of housing were commissioned in Azerbaijan in January-September 2017, which is by 4.8 percent more than in the same period of 2016.
Some 145,800 square meters of housing were commissioned in Azerbaijan in September 2017.
The capital investments in housing construction amounted to 696.7 million manat (a 47.6 percent increase) in January-September 2017, including 169.6 million manat in September.
Real estate market
The prices in Baku’s real estate market increased by 0.46 percent in September 2017, MBA Consulting Group said.
The main market segments, except for the primary housing market, showed growth in September.
Prices in the secondary housing market grew by 3.25 percent, in the land market – by 1.61 percent, in the market of commercial facilities – by 1.5 percent. Rental housing rose in price by 4.63 percent and rental of commercial facilities went up by 5.75 percent in September. As for the prices in the primary housing market, they decreased by 6.56 percent during the month.
Since early 2017, prices in the market have fallen by 3.28 percent.
In general, the decline in prices slightly slowed, and the rental market has even grown by 0.21 percent from the beginning of the year. Other market segments showed a decrease. Prices in the primary and secondary housing market fell by 17.4 percent and 6.29 percent, respectively. Since the beginning of 2017, prices in the land market have fallen by 4.2 percent, in the market of commercial facilities – by 14.83 percent and prices in the market of their rental have decreased by 14.45 percent.
The growth of prices in September is seasonal.
This is common – following certain decrease in summer, in autumn, the market starts to become active. We are seeing a similar situation this year as well. I think in October, the market will continue to show growth, some correction in prices may occur in November, but by the end of the year prices should increase again.
Earlier, it was reported that the prices in the real estate market can increase by ten percent in 2017. The gradual adaptation of the population to the current situation and the restoration of Azerbaijan Mortgage Fund’s activity can contribute to it.
The prices in Baku’s real estate market in US dollar terms decreased by 31.53 percent in 2016.
Construction material market
According to the Azerbaijani State Statistics Committee, the construction materials worth 409.7 million manat were produced in January-September 2017, which is by 29.3 percent more than in January-September 2016.
Cement production increased by 22.6 percent up to 2.11 million tons, the production of ready-mixed concrete – by 49.3 percent up to 512,700 tons, prefabricated concrete structures – by twofold up to 126,800 cubic meters.
The production of bricks increased by 38.1 percent up to 203,000 cubic meters, processed marble, travertine, alabaster and items made of them – by 2.9 times up to 15,956.6 tons, building blocks and cement bricks, artificial stone bricks or concrete bricks – 21.4 percent up to 8,442.6 tons, building lime – 11.9 percent up to 22,358.7 tons.
The production of gypsum plaster decreased by 31.8 percent up to 73,000 tons, asphalt - by 38.9 percent up to 116,600 tons in January-September 2017, the report said.