Review of construction sector in Azerbaijan (Summary of 2017)

Analysis Materials 16 February 2018 17:36 (UTC +04:00)

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

Some 66.2 percent of the total volume of construction work accounted for primary construction, reconstruction and expansion, 10.0 percent - overhaul, 5.0 percent - current repair and 18.8 percent - other construction work.

Some 84.7 percent of the total volume of construction work was carried out by non-state construction companies.

The total area of housing commissioned in Azerbaijan in 2017 was 1,727,400 square meters, which is 18.6 percent less than in 2016.

Housing with an area of 191,400 square meters was put into operation in December.

In 2017, capital investments in housing construction amounted to 891 million manat (an increase of 21.7 percent).

Real estate market

Prices in Baku's real estate market increased by 0.77 percent in December 2017, Director General of MBA Consulting Group Nusrat Ibrahimov said.

He said the prices in the primary housing market, secondary housing market, land market, commercial property market, as well as rental housing market and rental commercial property market increased for the month.

"In December, the prices in the secondary housing market increased by 2.54 percent, primary housing market - by 0.27 percent, land market - by 1.84 percent, commercial property market - by 0.75 percent, rental housing market - by 0.84 percent, rental commercial property market - by 2.24 percent," Ibrahimov said.

Ibrahimov added that in 2017 prices in the real estate market decreased by 3.46 percent.

"The prices in the secondary housing market declined by 3.54 percent, primary housing market - 7.75 percent, land market - 1.65 percent, commercial property market - 20.29 percent, rental commercial property market - 17.63 percent for the year," Ibrahimov said. "The prices increased by 13.85 percent in the rental housing market in 2017 compared to 2016."

Building materials market

According to the Azerbaijani State Statistics Committee, the building materials worth 567.8 million manat were produced in 2017, which is by 46.6 percent more than in 2016.

According to the report, 2,880.7 million tons of cement were produced in Azerbaijan (an increase of 24.3 percent), 797,500 tons of ready-mixed concrete (an increase of 96.8 percent), 144,500 cubic meters of prefabricated concrete structures (an increase of 64 percent) in the reporting period.

The production of bricks increased by 48.4 percent up to 298,400 cubic meters, processed marble, travertine, alabaster and items made of them - by 3.1 times up to 22,558 tons, building blocks and cement bricks, artificial stone bricks or concrete bricks - 1.2 percent up to 95,428.7 tons, building lime - 8.6 percent up to 29,795.4 tons.

The production of gypsum plaster decreased by 42.6 percent up to 83,400 tons, asphalt - by 60.3 percent up to 142,600 tons in 2017, the report said.