CBA: Real Estate Market Sinks by 23.8%

The Central Bank of Azerbaijan for the first time gave big numbers of falling realty market turnover (including residential premises) in comparison with NGOs. The subsidence position is directly related to the devaluation, as a result of which the manat became a secondary financial instrument for trades in this segment.

According to the report of CBA, in the first quarter the market declined by 23.8%, while most affected was the scope of the secondary market - by 27.6%.

As of April 1, (according to the notaries), the total cash flow was at 920 million 123 thousand manat (minus 23.8% against 1 April 2014). Proceeds to the accounts of notaries on the purchase / sale of real estate in the secondary market during Q1 amounted to 379 million 368 thousand manat (minus 28.7%), and the write-off from these accounts was 435 million 829 thousand manat (minus 26.7%).

This initial sale of real estate construction companies and cooperatives totaled 104 million 926 thousand (minus 23.4%). In the secondary market, the total sales volume was at 815 million 197 thousand manat (minus 27.6%).

Intermediaries also lost in the total profit - from January to April, they gained 56 million 461 thousand manat (by April 1 of last year it was 61 million 913 thousand manats - minus 8.8%).

The share of mortgage loans issued by banks - partners of the AMF was 36.7% of intermediaries’ participation. In monetary terms, it is 20.7 million against the 27.4 million manat as of April 1 of last year. --17D-