Prices on secondary housing in Baku down, real estate expert explains why

2021-09-17 02:23:34

(MENAFN- Trend News Agency ) BAKU, Azerbaijan, Sept. 17

By Elchin Mehdiyev - Trend:

The average price for the secondary housing in Azerbaijan's Baku dropped from 1,696 to 1,646 manat ($997.6-$968.2) per square meter, Director of the MBA Group consulting company, rea l estate expert, Nusrat Ibrahimov, told Trend .

According to the expert, in percentage terms, the decrease for the month was 2.93 percent, for the year - 1.73 percent.

Ibrahimov added that the average price per 1 square meter in the primary housing market increased from 1,401 manat to 1,428 manat ($824.1-$840), and hereby decreasing by 1.93 percent in monthly terms, and by 13.18 percent - on annual basis.

“The decline in prices for secondary housing in the capital of Azerbaijan was caused by structural changes. Two years ago, banks created conditions for the purchase of apartments built before 1970 on a mortgage loan. Then a restriction was introduced on lending to these apartments, as a result, their share in the market portfolio is growing, prices are falling. That's why, there are few buyers of these apartments, despite the large number of such housing offered for sale,” the expert clarified.

“Meanwhile, the rise in prices in the primary housing market was followed by a number of factors. The first is that there are few offers, the second factor - an increase in cost. All these factors lead to an increase in prices in the primary housing market,” Ibrahimov noted.

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