Real estate prices to rise 8% in Baku

The rise in real estate prices might range between 7-8%.

Ibragimov considers that insignificant changes in the cost are due to the gap between the established cost of flats and purchasing capacity of the population.

At the same time, the high cost of flats have objective reasons, caused by expensive electric power, building materials and transport services. On the other hand, the August collapse of a residential building in Baku still affects the real estate market.

At the same time prices will rise on lands and commercial areas, used for trade operations by businessmen, in March-May of 2008.

Prices are forecasted to rise 10-12% in this segment.

The association "Participants of real estate market" considers that the cost of old buildings is closely connected with the price of newly established buildings, while the cost of new establishments is a dominant in the price formation process.

"In order to buy a new flat, people sell old ones and define the price of the latter depending on the cost of the flat in a newly established building", N.Ibragimov explained.

/Day.Az/