Prices in the secondary housing market in the capital are not proportional to the income of the population

In February, the secondary housing market (RSV) of the capital again observed a permanent rise in prices (on average by 3.5%) depending on the location of houses. Began demolition on the avenue Narimanova (former Sovetskaya) and increased excitement in the electronic media - main reason for this. However, if the demolition of dilapidated houses in the streets of Fizuli, Badalbayli and Mirzaaga Aliyev caused a sharp rise in prices in this segment (20 to 40% in 2010 - 12 years), now prices are rising moderately, though not natural.

According to the monitoring of the Public Association "The market property", the secondary housing market in the near future will not crumble at least because in 2013 the State Oil Company of Azerbaijan (SOCAR) is connected to the gas supply 149 multi-family buildings (30,374 apartments), which was the largest market activity in the segment of primary residence.

The Deputy Chairman of the Public Association Promoting Economic Initiatives, Rovshan Agayev, believes that the already inflated price level of second homes in the middle of the second quarter will be higher. Rise and building materials, he said. And this is due not only to the eviction of residents, most of which are nestled in a residential area from 15 to 20 sqm family, will be forced to because of the unfair compensation (1,500 manat per sq. m.) to take a bank loan and other kind of debt to buy a home.

He believes that in the conditions of the city of Baku, where the price of two - bedroom apartment (except cheaper houses yard system) varies from 40 000 to 500 000 manats or more ($ 51,000 - $ 640,000), it makes no sense to talk about the average prices . In the case of easing the banking system (now require a deposit of up to 40% of the cost of housing, salary certificate of not less than 700 manats at the age of 45) in mortgage lending rates on "Soviet housing" immediately increase by 15-20%.

In February, the proposal was equal to the volume of demand for housing with a small excess of the latter. Most attractive areas are yet Sabail and Khatai. Former Followers (Yasamal, Narimanov and Nasimi districts) lag behind competitors in connection with the government's plans to demolish the houses. In the same comprehensive portfolio of proposals in these areas share in February was 79% by volume. The main reason for the trends that are resold buildings, creating a secondary market, these areas are beneficial for mortgage lending.

Two and three room apartments in the capital are most popular among families, while bachelors prefer one-room dwelling in an apartment building. Preference is given to the proximity to the transport, especially the metro and bus stops. So, in the prestigious settlement Bakikhanov with good transport links, but 1 km from the subway, a two-room apartment really costs 70,000 manats ($ 89,000), and in the newly-built village Ahmadli with access to the eponymous metro station the same apartment costs AZN 85 000 ($ 108 000).

The expert noted that the population has become an exemplary payer of interest on consumer loans, and lays the housing, borrowing to expand living space. Therefore, the greatest demand (about 55%) is for two-and three-room apartments at a price exceeding the average level ($ 2 000).

In the last month and in other major cities of the country took place on activation of RSV and a relative rise in prices, although there was not observed demolitions.

Rovshan Agayev as well as other experts, believes that all segments of the housing, including rental apartments, unreasonably expensive and objective indicator of this is the bulk of the income of citizens. According to the State Committee of Statistics, in 2013, every Azerbaijani earned 3,705,700 manats. The technique itself is counting wrong, equalizing state employees and retirees with an income of 120 - 170 manats a month and hundreds of millions of oligarchs bred in offshore zones.

If you follow the logic of the State Statistics Committee, the average citizen in the case of refusal of food and water will buy a studio apartment in the Pirallahi district of the capital for 8 years, and in not the most expensive Yasamal - for 30 years.

However, the same State Statistics Committee estimates that people spend their income - 64.3% of their leaves for the purchase of goods and services, 10.1% of cash income goes to pay taxes, fees, insurance premiums and loans. In addition, there is children's education, health and a lot of different items of expenditure which discards the Azerbaijani dream about an apartment. - 17D-