Capitalization Period For Housing In Azerbaijan Reaches 23 Years CBA

(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 13. Housing prices in Azerbaijan increased by 8.4% over the past year, while the median monthly rent offered nationwide stood at 917 manat ($539.41) and the real estate capitalization period reached 23 years.

According to the Central Bank of Azerbaijan's (CBA) Financial Stability Report, the capitalization period increased by 2.1 years compared with the end of last year. This change reflects rising housing prices alongside a relative decline in rental prices.

The pace of housing price growth has shown signs of moderation. Compared with the same period last year, prices rose by 12.7% in the primary housing market and by 8.3% in the secondary market. While the rate of price growth in the primary market remained stable over the past year, growth in the secondary market slowed somewhat, the report noted.

The report also assessed how household incomes affect mortgage affordability. The affordability index, widely used internationally, is calculated as the ratio of average monthly disposable income per capita to the average monthly mortgage payment.

An index above 100% indicates that disposable income is sufficient to cover mortgage payments, while a reading below 100% means that the monthly mortgage payment exceeds disposable income.

According to the CBA, positive growth in household disposable income over the past two years has driven a sustained increase in the affordability index, keeping it above the benchmark level.

This trend indicates that households have maintained their ability to meet mortgage payments, the report said.

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