Prices of existing homes rise by 1.5 %

In November in the capital and other cities of Azerbaijan prices in the secondary housing market increased on average by 1.5%. In the last month compared to the previous one activity in this market increased, as well as the number of transactions . According to expert estimates , the price for 1 square meter for sale in November was 1,310 dollars. In comparison with the same period last year, prices have increased by 35 %, and in comparison with the beginning of the year - by 25%. Within a month, 57% of the apartments proposed were apartments costing less than the average, that is 1,310 dollars per 1 square meter. During this period the growth in prices was observed for 1-2 room apartments, while for 3-4-5 room apartments serious price increase was not observed. Still the most attractive were the Yasamal , Narimanov , Nasimi and Khatai districts of Baku. In the portfolio of proposals they accounted for 75 %.

Higher prices in the secondary housing market experts explain with a number of reasons: the small number of proposals and as a consequence increased demand . One of the experts commented the situation - in the last few months on the secondary market were offered very few good apartments. And if there are such apartments, the proposed ones are expensive. In this case usually a rise in price and price trend occurs. The expert believes that the rise in 1-2 room apartments is associated with mortgage loans, the maximum size of which is about 50,000 manat . This amount is not sufficient to purchase a three-bedroom apartment. Experts believe that the mortgage factor also seriously affects the increase in prices on the secondary market . Experts believe that on the mortgage most people buy apartments on the secondary market. Consequently, they are for a long time. That is, for 10-25 years they will not be put on sale. As a result, in the secondary housing market the supply will decrease from year to year.

The rise in fuel prices will not seriously impact property prices, says the head of MBA LTD, a real estate expert Nusret Ibrahimov .

In the coming days stability in the secondary housing market will continue.