In July, prices of existing homes rose by 1.8%

In July in Baku and in other major cities of the country prices in the secondary housing market increased by an average of 1.8%. In comparison with the same period last year, prices increased by 31.2%. According to expert estimates, at present, the average price index of existing homes is 1,286 U.S. dollars per 1 square meter. With regard to housing, the prices are lower than the above mentioned, and their share in the overall portfolio is 53.2%.

    One of the important factors that affect the price increase is the volume of proposals. Over the last few months there was decline of the proposals. According to estimates by the "Property Market Consumers", in July compared with the previous month, the volume of proposals on the secondary housing market declined by 3.1%.

     During the month, the most attractive parts of the capital remained Khatai, Yasamal, Nizami, and Narimanov. Studies show that after the demolition of housing also enhances the process of mortgage lending, so the interest in these areas has increased. Within a month, the price increase took place in the Khatai region - 2.7%.

    In July, the demand for 4 and 5 room apartments, in particular, for four, reduced, but the demand for 1, 2 and 3 room accommodation increased. Accordingly, there was increase in prices for 1 and 2 room apartments. For 2 room apartments the prices increased by 2%.

     Note also that the average cost of a single room is U.S. $ 49,841, and the average cost of a single apartment is 117,521 USD.

      Experts explain the higher prices in the secondary housing market with the sharp decrease of proposals, the increased mortgage lending, the housing demolition and the purchase of new housing for the provided compensation.

     Ongoing studies indicate that in the secondary housing market, as opposed to the primary one, higher prices are taking a sharp trend. This is due to the fact that new buildings have problems with public services.

     In the coming days, activity in the secondary housing market will continue. Prices will remain stable, although there will be a tendency for them to grow.

The prices of secondary housing in Baku and several other cities of Azerbaijan in thousands of USD:

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