Drop in prices on the real estate market in Baku

The cost of residential and nonresidential spaces is dropping significantly throughout the whole territory of the capital city, said Ramil Osmanov, chief executive of the public association "Real estate market participants" speaking about the rates of rise in prices and the situation on the estate market in Baku.

"Our researches prove that on the secondary market the drop in price reaches about 7-8% per month, while in new buildings the drop in prices is on the level of 3-4% in a month. Estate is dropping in price on some relatively active areas on the market of the capital city", said he.

He noted that in some areas of Baku the immovable property is not quite cheap, especially the areas adjacent to the center of the capital city.

"The drop in prices on residential buildings in the capital city influenced all segments of the estate market. The drop in prices, especially on the renting of commercial spaces and residences started in the last month of the last year", said Osmanov.

He said the monitoring they held shows that if the country does not start the conduction of complex measures to eliminate the influence of the global financial crisis, the drop in price on immovable property in the capital city will further continue. At the same time the drop rates will be more intensive, he said.

"Some construction companies have recently stopped their activity or are selling their stocks to other companies, which indicates that there is a need for additional financial means", concluded Osmanov.

/Day.Az/