Cost of Apartments Increased by 10%

In the first quarter of this year in Azerbaijan apartments were offered an average of 10% more than in the same period of 2014, and 3.5% more than in the fourth quarter. This trend is associated with the jump down in the manat rate on 21 February this year, after which the market increased expectations of growth in property prices.

According to estimates of the State Statistics Committee, in the primary housing market in Azerbaijan, prices rose at an annual rate of 12.7%, while in the secondary market – at 10%. In the first quarter of the year new apartments were 4.8% more expensive, and "old" apartments were 3.5% more expensive.

Experts believe that such a reaction of the real estate market to the volatility of the financial market is natural. At the same time, in their opinion, if the national currency continues to lose purchasing power, the incomes will fall. It will affect the activity in the property market and thus prices will go down again. So far, according to realtors, real estate prices have stabilized after their recovery.

In 2014, rights to about 98,000 primary and secondary realty objects were registered in Azerbaijan. Of these more than 47,000 accounted for Baku. ----08D