In July, prices for primary housing market increased by 0.9%

In July, prices for primary housing market have increased by an average of 0.9%. According to expert estimates, at present, the price index for new housing is more than 873 manats per 1 sq. meter. Calculations of the public association "Consumers Estate Market" shows that in comparison to the same quarter of last year, prices have risen by 3.1%, and in comparison with the previous year as a whole of 10.2%. If we compare the prices with September 2008 (during the crisis), prices fell by 26%. Compared to the beginning of the year, prices rose by 5.3%, while last month they increased by 4%.

In July there was activity in the primary housing market and the number of transactions increased. The most attractive areas were still the Yasamal, Khatai and Nasimi districts of Baku. The total portfolio of new buildings in these areas was two thirds on the market. For other areas any major changes in the construction sector were not observed. The number of construction companies in comparison with the previous month decreased from 131 to 129. The most popular were two-room apartments, with a percentage of 40.2%, one-room apartments were 30.2%, and other 29.6% were 1, 4 and 5-room apartments.

Experts believe that in the primary housing market, as well as in the secondary one, higher prices are due to the increased purchasing power of the population, especially due to increased number of demolition of old housing in Baku. This has led to an increase in transactions in the primary market. However, according to experts, the price of the primary market does not correspond to reality. In the coming days, the activity in this market will continue, there will be an uptrend in prices in this market.