Most Sites Not Bought from Auctions

Only 12 of the 36 facilities were privatized in the course of the auction held on 25 October in Baku and regions of the country, according to the State Committee for Property Affairs. For the remaining 24 sites buyers have not been found. They are mainly objects of trade, household and catering, as well as residential areas.

Since September, the objects are estimated at the market price. Experts have different opinions about the fact that despite transparency and conditions for competition in the process of privatization not all objects are sold.

The expert Rashad Aliyev told Turan in this regard the sites put up for auction do not have investment attractiveness. “These types of facilities are sufficiently available on the property market. In the market it is difficult to sell such objects. And then there was the government’s intervention into the market. On the other hand, we should remember that these are ‘remnants’. That is, these objects were not quoted initially, otherwise they would have long been privatized, the expert believes.

According to the expert Mohammed Talibli, it is difficult to sell objects because of their high price and the low investment attractiveness. He also hinted at the overall investment climate in the country.

“On four investment factors (political, economic, legal and social) problems exist in Azerbaijan. Especially it concerns companies with equity participation.

Mohammed Talibli believes the current investors protect their capital against sudden surges in the market. As a result, it complicates their participation in profitable business projects.

Recall that tomorrow, November 1, the State Committee for Property Affairs will hold another auction.  --08B--