OMM Newsroom
Property prices are expected to rise this month in Baku’s Sabail, Nasimi, Yasamal and Narimanov districts, as well as in areas of Khatai district close to the city center.
“Operative Information Center-OMM” reports that Azerbaijani Appraisers Society Board Chairman Vugar Oruj said this in comments to Trend.
He said the main factors driving prices higher in these districts include infrastructure upgrades, demolition work and population growth. The formation of new families and the start of the academic year are also affecting demand from buyers and renters.
“Higher construction costs, limited land availability and the continued investment appeal of real estate are contributing to a steady rise in prices throughout the year. Increased demand from buyers and renters in the autumn months also affects sale prices,” Oruj said.
The society’s chairman said the first price increases were expected primarily in land plots in October, as well as in November and December. Limited land supply could lead to steeper price rises for land than for other types of property.
He said rising construction costs would also affect apartment prices in buildings at the foundation stage. Higher demand is an additional factor pushing up prices in new developments.
“The demolition of old buildings, their unsafe condition and the end of their service life are leading residents to favor new buildings. Apartment prices in new developments, which are attracting greater interest, are expected to rise,” he said.
Oruj also said prices for detached houses were expected to increase, attributing this to rising costs of both components that determine their value: land and construction.
The expert also pointed to agricultural land, saying he expected a significant increase in the price of large plots following a decision on land consolidation.
As for the possibility of prices falling, the society’s chairman said no sharp decline was forecast in any segment of the real estate market. However, price increases for non-residential properties are expected to be more modest, with prices likely to remain stable.
He said the closure of some businesses and high interest rates on business loans could somewhat reduce demand for commercial premises.
“These factors may limit price increases for non-residential properties in October, November and December. In some cases, discounts of 5% to 7% on rental prices for properties offered to the market are also possible,” Oruj added.
