Infrastructure

Infrastructure

Price rise in land market of Baku restored

26 February 2014 14:42 (UTC +04:00)

MBA Consulting Group told APA-Economics that this may be caused by end of winter season and preparatory works for construction sector and start of next destruction wave in the city.

A decision on destruction of old buildings in Sovetski territory of Baku resulted in price rise in the land market. So, sale period declined by 3.92% compared to a month earlier. Price of per acre of land rose 2.35% to 17,646 from $17,240.

Through price rise was recorded in most districts of Baku, a price reduction was observed in Khatai, Absheron, Garadafg and Sabunchu districts.

The most active districts in the land market are Nasimi, Yasamal, Narimanov, most passive districts – 3^rd and 5^th zones.

Supply increased in the 2^nd and 4^th zone, decreased in the 3^rd zone. Prices changed under different rates. Except 4^th zone, the prices rose in all three zones.

Zones	December, 2013 ($/acre)	January, 2014 ($/acre)	Average price change, %
I zone	263,452	264,102	0.25
II zone	149,556	152,627	2.05
III zone	30,505	35,985	17.96
IV zone	5,581	5,212	-6.61

90% or 631 of plots of land put up for sale were empty, others – non-residential areas and old residential areas. New buildings are in the place of old buildings, 5.5% - in the areas of former industrial and household objects, other – in new lands. Average plot of land in the portfolio of supply rose 52.04% to 40.3 acre/plot. Decrease of supply portfolio was recorded in all parts of the city.

Average prices in the land market of Baku increased in January. The price index soared 2.35% to 8,832. Average price of per acre of land rose 2.35% to $ 17,646. Demand increased in most districts and consequently, increase of private construction influenced number of supply.

Generally, the supply is below in the centre of the city. The most expensive plot of land was in Nasimi (350,000 USD/acre), the cheapest plot of land – in Masazir, Absheron (383 USD/acre).