Infrastructure

Infrastructure

Forecast: price rise in housing market of Baku will continue

26 February 2014 14:01 (UTC +04:00)

MBA Consulting Group told APA-Economics that activity in real estate market of Baku rose 1.98% in January, 8.17% compared to a year earlier. Though, the prices rose in previous months, an activity rose in January. Along with this, declines in the house segments in the portfolio of supply were observed with the increase of demand. Structural changes continued in the market and consequently, relevant changes were recorded in the market indicators.

Increase of activity in the primary housing market can be considered as caused by increase of deals in the market. Recent years, the price index goes up due to increase of destruction process in the capital and decrease of cheaper houses and increase of share of houses, which were not sold before, in the portfolio of supply.

Number of multi-room houses in the primary housing market made 103, number of houses put up for sale made 600 as at end of January.

Though the supply decreased throughout a year, in January, number of residential houses increased compared to the second half of 2013. This may be caused by additional houses ($1,500-4,000 for m²) put up for sale by some investors and construction companies. The growth is mainly observed in the expensive housing market.

Though, large multi-room houses made majority in the third zone of the city, the fourth zone led the sale of villas and private houses. This situation allows population density and price rise in this zone.

Average price of the houses put for sale across the city rose 2.30% in January, 25.1% compared to a year earlier. In the primary market, these prices relevantly increased by 3.05% and 33.9% to 1,181 USD/ m².

Compared to previous year, a rapid growth was observed in the prices of elite houses. Price rise in elite houses are felt in Yasamal and Nasimi districts.

According to existing situation and statistics, the activity and price rise in January is a continuation of 2013. Existing situation in the market indicated that the price rise will continue.