The primary housing market perked up by demolition in the city center

BAKU/10.02.14/TURAN : After several years of decline, the primary housing market (PHM ) perked up - multi-storey buildings are built in the periphery and in the villages of Baku.

The trend is not accidental - 2011-13 were marked by mass demolition of housing in the city center ( Sabail Yasamal and Narimanov districts) in violation of the rights of property owners .

Compensations will be cut in half for the demolition , which does not allow citizens to buy property in the center, and they are forced to acquire flats "under lighthouse" for sale on the outskirts, making repairs at their own expense . As a result of mass demolition of housing prices in this segment rose in January , reflecting the trend of last year.

In addition, if at the beginning of last year, buyers bought the medium renovated apartment in an average of 810 manats per 1 m. meter, now preferred housing without repair at an average price of 450 manat per square meter. Actively built Khatai , Sabunchu , Pirallahi, Garadag and Binagadi districts of the capital . Given the marked increase in individual buildings and in the provinces , especially in the cities of Ganja , Sumgayit , Shirvan , Guba and Yevlakh .

According to expert estimates , the volume of activity of buyers of new buildings in the city center fell by 80 %, but the wealthy citizens are buying apartments in the complex "Yeni Hayat " and Port Baku Residence in price from $ 5 thousand to 12.6 thousand per square meter and above. There are even offering $ 130 thousand per square meter. So in terms of money market in the center of Baku is not inferior to the periphery.

The greatest demand in January this year enjoyed two - bedroom apartments in the capital. Then came one-bedroom apartments in the same third zone. Smallest physical demand is five or more rooms housing a total area of ??235 to 400 m. m in buildings (there is a large squaring one - two-storey developments on an individual project ) .

The price breakdown is as follows - one-room apartment "under the lighthouse " in 60 - 65 sq. meters the pay is from 25 to 30 thousand manats, with bedroom area of ??92 - 95 sq. meters - 40-45 thousand manats . Not renovated two-bedroom apartments (132 - 140 sq. m.) are 59.5 - 65 thousand , four-room (183 - 190 sq. m.) - 82 - 90 thousand manats , five-room ( 235 - 260 sq. meters) - 105-120 thousand manats . Prices are average - in the village Bakihanov Sabunchu applied coefficient of 1.3 , and in the cities of Shirvan Yevlah - minus 1.3 . According to experts, for the satisfactory repair , followed by settling , these figures should be multiplied by 1.5 - 2.

Experts believe that the activity in the PHM , as well as high prices, provoked officials supervising the construction sector . Prices in this segment, as well as at the secondary housing market , inflated. The reason is that the oligarchs - officials invest in the construction the so-called "easy" money earned not by private enterprise , but by embezzling the budget. Therefore, the market has no leverage affecting prices drop .

The market is also affected by the monopoly - Ministry for Emergency Situations for several years has not gasified buildings that " do not meet standards." After the owners of new buildings have been squeezed out of the segment (many of them became realtors) , the same buildings began to "meet the standards" and were gasified.

In the near future stability in PHM will continue. - 17D -

 

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