TODAY.AZ / Business

Real estate market is still fluctuating

24 April 2015 [10:15] - TODAY.AZ

/By AzerNews/

By Nigar Orujova

Real estate prices continue to fluctuate, descending in dollar and rising in manats.

Prices in the real estate market in Baku decreased by 17.92 percent in dollars and rose by 9.87 percent in manats, said Nusret Ibragimov, CEO of MBA Group.

"Prices in the housing market [both primary and secondary real estate markets] in dollars fell by 16.38 percent, while increasing by 11.94 percent in manats. Moreover, the number of offers decreased by 8.3 percent. The exposure period increased by 14.8 percent compared to last year, when compared to the previous month it decreased by 5.3 percent," he said.

Activity in the housing market has increased in March, he added. "People have started to invest in real estate in order to save funds from the expected inflation wave."

The expert predicts that the cost of housing in Baku will continue to grow for a while. He however insisted that prices should soon stabilize and eventually decrease toward the end of the year.

"Rental property remains more or less stable," Ibragimov said.

"In manats, the cost of rental housing has increased by about 5 percent, and in dollars dropped by 21.53 percent. Prices for the rental of commercial buildings in manats also increased by 11.36 percent, while in dollars prices fell by 16.81 percent," he said.

Ibragimov noted a very little activity in the rental market. "Activity in the rental market of commercial buildings fell by 25 percent as compared to the same period last year, and the market of rental apartments fell by about four percent."

Activity in the market of commercial buildings also fell - 15.17 percent, while prices in manats rose by 13.56 percent.

Nevertheless, the opposite situation is taking place in the land market. "Activity in the land market saw at the end of last year, early this year and at the first quarter of 2015 an increase by 1.8 percent [compared with January-March 2014],” the CEO said.

The seasonal months of April-June, for this market is starting, so a rise in prices and activity are expected in the near future.

“As of now prices in manats increased by 5.9 percent and in dollars dropped by 20.88 percent," he said.

The devaluation of manat at the end of February led to an adjustment across all sectors, including the real estate market.

The mortgage market was not exception, the manat’s new cost resulted in the termination of many mortgage contracts.

URL: http://www.today.az/news/business/140127.html

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