More Than a Tenth of Total Mortgage Loans Issued Last Year

The Azerbaijan Mortgage Fund has reported on the results of the past year. As of January 1, the AMF issued a total 17,975 mortgage loans, 11.87% or 2,133 of which occurred in the last financial cycle.

The leader in the list is Baku - residents of the capital for the reported period were issued 12,778 or 71.1% of all the loans to purchase housing. Among the districts of Baku residents preferred the Khatai district (22.5%). Following are the Yasamal (15.6%) and Binagadi (14.1%) regions. The least popular within the capital are the regions of Sabunchu (4.6%), Sabail (3.7%) and Garadagh (3%).

Following Baku are Sumgayit - 1,786 mortgages, Absheron - 928, Ganja - 706 and Nakhchivan - 192, while the remaining settlements statistics is negligible.

The most active ones are young people from 18 to 30 years old (40.9% of the loans), while the younger generation aged 30 to 36 years slightly lags behind (32.4%), and those who are older, have 26.7% of the mortgage loans.

Most popular housing is of the city residents – it accounted for 91.8% of the total loans due for apartments in multi-storey buildings. Slightly less than half of the purchased property (41.8%) has a total area of ​​40-60 square meters. Areas up to 80 square meters account for 30.8% of the acquisitions, and a little more than 10.8% of the loans is the proportion of those who prefer areas up to 100 square meters.

Baku citizens prefer cheap square meters - more than half (51.2%) of housing costs from 30 to 60 manats, 39.3% of the credits allocated for 90 thousand manats. 5.2% of borrowers have the ability to pay up to 120 thousand manat at 2.2% - 120 AZN. The same number (2.2%) of people cannot afford an apartment costing more than 30 thousand manats.

The monthly income of more than a third (37.4%) of borrowers exceeds 1,100 AZN, 700 to 900 AZN is received by 20.7% of the population, from 500 to 700 manat – by 17.3%, from 900 to 1,100 manats – by 15.6%.

AMF for all the time attracted 390 million manat through the placement of bonds and 266 million - from the state budget.

The Fund started to issue mortgage loans in March 2006. Since the beginning of 2007 for six months it practiced social mortgage at 4% per annum, then the banks expressed a lack of interest in it.

In commercial terms, housing loans are issued by 28 AMF agent banks. The funds are issued to citizens of the country in the national currency for a period from 3 to 25 years to a maximum of 50 thousand manats. Commercial credits are issued at 8%, while loans in the framework of social mortgage - at 4% per annum. --17D-