In March, prices for primary market grew by 2.5%

In March, prices for primary housing market (PHM) rose on average by 2.5%.

According to expert estimates, at present, the average price index for PHM is above 850 manats per 1 sq. meter.

It should be noted that in comparison with September 2008 (the crisis period) prices fell by 28.5%. At that time, the cost of 1 sq. meter was 1,194 manat.

In March, there have been active in the market and therefore the growth of transactions. The most attractive areas for the month were Yasamal, Khatai and Nasimi.

According to research by the public association "Property Market Participants", the number of for sale multi-storey houses on the market has declined. The number of such houses has decreased from 406 to 402, and, mainly in Narimanov, Nasimi and Khatai districts of the capital. In the capital there are houses whose foundations have already been laid, but in the list of homes for sale listings, they are not included. The number of construction companies in the past has fallen from 139 to 135. The studies found that demand mainly regarded three-room apartments. Thus, 39.2% of the housing sold in January fell to three-room apartments. 30.2% was two-room ones, and the remaining 30.6% were 1, 4 and 5 room apartments.

Experts believe that the rise in secondary housing prices in recent months also affected the price of PHM. However, the rise in PHM is regarded as artificial. One of PHM experts comments on the current situation by the fact that the owners themselves determine the exposure time based on the needs of their material. It is easier to restrain prices artificially. It is believed that the negative impact on the activation of PHM on the following factors: lack of ownership documents of apartments, the poor state of public services, unfavorable mortgage terms, and monopolization.

In the coming days, the stability of the PHM will continue, while major changes in prices are not expected.

The price list for new flats is shown below (in AZN per square meter):