Price rise in land market of Baku continues - ANALYZE

Price rise in land market of Baku continues - <span style="color: red;">ANALYZE
# 15 April 2014 11:28 (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 0.63% compared to a month earlier. Price of per acre of land rose 1.35% to 17,884 from $17,646.

Through price rise was recorded in most districts of Baku, a price reduction was observed in Absheron, Nasimi, Sabail and Nizami districts.

The most active districts in the land market are Khazar, Garadagh, Sabunchu and Surakhani, most passive districts – Nasimi and Narimanov districts. In February, the activity increase in the 3rd and 4th zones.

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

Zones

January 2014, $/acre

February 2014, $/acre

Average price change, %

I zone

264,102

264,136

0.01

II zone

152,627

153,708

0.71

III zone

35,985

38,607

7.29

IV zone

5,212

5,465

4.85

90.0% or 593 of plots of land put up for sale were empty, others – non-residential areas and old residential areas. 20.1% of the 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 dropped 46.89% to 21.4 acre/plot. Decrease of supply portfolio was recorded in all parts of the city.

Average prices in the land market of Baku increased in February. The price index soared 1.35% to 8,951. Average price of per acre of land rose 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 Khazar (440 USD/acre).

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