Prices in real estate market drop last year

PDirector General of MBA Consulting Group, real estate expert Nusrat Ibrahimov told Trend that prices for primary and secondary housing, land, commercial properties, as well as rental of housing and commercial properties increased during the month.

“So, prices on the secondary housing market grew by 2.54 percent, in the primary housing marketby 0.27 percent, on the land market-by 1.84 percent, and on the market for commercial propertiesby 0.75 percent. Rental housing increased by 0.84 percent and rental of commercial properties-by 2.24 percent,” Ibrahimov said.

The expert noted that overall in 2017 prices in the real estate market fell by 3.46 percent.

“During the year prices on the secondary housing market declined by 3.54 percent, in the primary housing market by 7.75 percent, and in the land market by 1.65 percent,” the expert.

He went on to say that as compared to the end of 2016, prices on the commercial property market declined by 20.29 percent, and their rent fell by 17.63 percent, adding that during the year, prices increased only in the rental market, where prices increased by 13.85 percent.

In general, 2017 could not fully meet the expectations in the market, according to the expert.

Earlier, during his interview with Azernews, Ibrahimov stressed that he expects prices to be stable in 2018, adding that by the second half of 2018, prices are expected to grow by 3-6 percent.

Today, the share of the construction sector in Azerbaijan’s GDP amounts to about 10 percent.

The government plans to achieve a GDP growth by 249 million manats ($146.47 million) until 2020, through the implementation of measures envisaged in the Strategic Road Map for the development of housing provision at a reasonable price.