People need at least 21 years to save money for purchase of apartment in Azerbaijan - ANALYSE

People need at least 21 years to save money for purchase of apartment in Azerbaijan - <font color=red>ANALYSE</font>
# 10 January 2012 11:26 (UTC +04:00)
So that, population’s average monthly earnings used in calculations make AZN 2.5 bln. For precision and objectivity, only economically active population (4.6 mln persons) are taken into consideration, therefore, per head monthly earning is equal to AZN 544. Note that, this figure is higher that average monthly salary (AZN 356) and arithmetic average monthly income (AZN 278). Thus, the calculations reflect even optimistic scenario.

According to State Statistical Committee, approximately 25% of population’s income are directed to accruing of deposits and capital, that is, to save. Note that, although there is no any norm in respect of direction of which part of income in macroeconomic analyse in world practice, direction of ¼ part of income to saving may be acceptable. Thus, approximately AZN 136 can be directed to saving per year, in Azerbaijan.

Referring to MBA Ltd/ Company’s consulting and researches in property market, one-room apartment is sold for $ 43,600 or AZN 34,300, in primary market. Note that, purchase of one-room apartment is considered cheaper in the conducted calculations by taking the incomes of one person into consideration.

Therefore, average statistical citizen need to save money for 252 months or 21 years to purchase one-room apartment. It’s clear that, it has different variants. For Example, if the monthly salary is more than AZN 544 and saving part is over 25%, the period can be reduced.

For comparison note that, this period makes 26 years in Russia. US is leader across the world. This period is 3 years. This period is equal to 4-6 years in the developing countries such as Europe’s, Brazil and Turkey.