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Baku sees price rise in plots of land on background of limitation of supply

02 July 2013 12:53 (UTC +04:00)

Baku. Nijat Mustafayev – APA-Economics. Majority of plots of lands purposed to market in Azerbaijan during May, 2013, made vacant lands.

According to Property Market Participants PU, the tendency on destruction of old residential houses in May dropped. Borders of the houses built in vacant lands extended to suburb and suburban areas (3^rd and 4^th zones). However, rate of construction was passive.

Most of works during destruction were construction of social and cultural objects by the state, roads and their enlargement.

82% of 716 ha plots of land purposed to the market was vacant, others – non-residential and old residential areas: “Though the number plots of lands in the market, the demand increased due to season. Moreover, the supply on land market decreased. Average price on supply in the market on limitation of plots of land in the centre and areas near the centre also increased (1.1%). Price index also grew to 270.7 points from 267.8 points”.

Number of deals on sale and purchase of plots of land also increased and activity on this segment of the market changed to positive: “According to market researches, the prices on the zones increased too. Exposition period of the lands dropped 1.9% and relevantly riskiness also slipped”.

In May, average price of one are of lot of land rose 1.1% to $16,104 from $15,931.

Most of price rise was observed in Khazar District (2.1%).

The most expensive plot of land purposed to the market was in Narimanov district (Ataturk Avenue) (AZN 250,000/are) and the cheapest plot of land – in Absheron (Pirekeshkul settlement) ($350/are).

Price dynamics for zones in May