OMM Redaksiyası
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 Vugar Oruj, chairman of the board of the Azerbaijan Society of Appraisers, said this in an interview with “Trend.”
He said infrastructure upgrades, demolition work and population growth in these districts are among the main factors driving prices higher. The formation of new families and the start of the academic year are also affecting demand from buyers and renters.
“Rising construction costs, limited land availability and the continued investment appeal of real estate are contributing to sustained price increases throughout the year. Higher buyer and renter demand in the autumn months also affects sale prices,” Oruj said.
The society’s chairman said prices are forecast to rise first and most noticeably for land plots in October, as well as in November and December. Limited land supply could make price increases in this segment greater than in other types of property.
According to Oruj, higher construction costs will also affect prices for apartments in buildings at the foundation stage. Increased demand is an additional factor pushing prices up in new developments.
“The demolition of old buildings, their unsafe condition and the fact that they have reached the end of their service life are leading residents to prefer new buildings. Apartment prices in new developments, which attract the greatest number of inquiries, are expected to rise,” he said.
Oruj said prices for detached houses are also expected to increase. He attributed this to rising costs for both components that determine their value: land and construction.
The expert also pointed to agricultural land, saying that prices for large plots are expected to rise significantly following a decision on land consolidation.
As for the possibility of price declines, the society’s chairman said no sharp decrease is forecast in any segment of the real estate market. However, price growth for non-residential properties is expected to be weaker, with prices likely to remain relatively 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 rents for properties offered on the market are also possible,” Oruj added.
