Assessment of Privatized Property Will Henceforth Be Based on Market Prices

The Cabinet of Ministers on October 5 adopted two resolutions, according to which the assessment of privatized property, as well as land under privatized enterprises and private facilities, will be based on market principles.

Under current rules in 2001, the assessment of property was carried out mainly in view of the residual value. Estimation of land under privatized objects and private facilities built on public lands has been made since 1998 at the standard price.

The government has decided that if the value of a property or a plot of land is lower than the prevailing price in the public register in the sale of land, the assessment is made in compliance with the law of Azerbaijan Republic "On appraisal activity". This law determines the assessment of the property in line with market requirements. The same applies to other properties, vehicles and equipment.

It is noteworthy that on October 7, the State Committee for Property Affairs announced tenders for the sale of 51 property items valued at market conditions. For example, a non-residential premise in the Yasamal district of Baku with an area of 57 m2 is estimated at 200 thousand AZN and 3,466 manats per 1 square meter. Until recently, this area could be registered with the State Property Committee auctions for no more than 20,000 AZN.    -----08B