Consequences of the Ukrainian war in Baku – It is no longer possible to buy an apartment
“Apartments in Baku are expensive, and good ones are hard to find. If you don’t bid on the apartment you like today, it will already be sold when you arrive tomorrow.” Vü said thissnow and Aytaj Gasimov have been married for six years. From the day they got married, they plan to save money and buy an apartment near the center of Baku. The couple, who are interested in the housing market every year, say that prices are on fire this year.
“For about four years, we often talk with real estate agents, 2018-in offer Three-room houses are now four times more expensive. The number of newly built or first-hand houses is less than last year, and the price is higher. Also as a territory prices changes. A three-room house near the “Hezi Aslanov” metro station of the capital is sold for 172,000 manats, while a house in the same situation near the “Nizami” metro station is sold for 260,000 manats. offer is done. Old buildings are relatively cheap. Again, we were interested in a three-room, old building near the “Nizami” metro station, the price of which was 160,000 manats. We don’t understand the reason for the sharp increase in prices this year, with the money we saved now, we could have bought a good apartment three years ago, but now it’s impossible”, – Vüsnow Gasimov told RFE/RL.
According to the statement of the State Statistics Committee, the value of apartments in Azerbaijan increased by 5.5 percent in nine months of this year compared to the same period last year. During this period, the highest price increase was observed in the primary housing market – 5.7 percent, and the price increase in the secondary housing market was 5.1 percent.
Radio Liberty investigated the reasons for the price increase and sales dynamics in the housing market.
Realtor Mulkadar Rustamov says that in 2022 Baku The most expensive apartment in the property market was sold for 5 million manats. There were also villas sold for 13-15 million manats.
Realtor Mulkadar Rustamov says that in 2022 Baku The most expensive apartment in the property market was sold for 5 million manats. There were also villas sold for 13-15 million manats.
“Although it is not official, according to our calculations, 170,000 real estate sales were carried out in the last period of 2022. Demand is mainly located in areas with a sea view, as well as close to the center to apartments has been There are positive dynamics in Ganja by regions. A revival is felt both in the sales market and prices increased. Compared to previous years, sales have also increased in Gabala,” he said.
Rustamov said that Mortgage and Credit The increase of funds of the Guarantee Fund (IGZF) had a positive effect on the sales dynamics. Every 10 7 of the apartments were sold through this fund. Foundation 2020– for the years 2025 20 in order to improve the living conditions of a thousand families 1.7 billion intended to finance a mortgage loan in the amount of AZN. “With the influence of these funds, the market managed to stay on its feet,” said the realtor.
This year january– more than 51,000 real estate mortgage contracts were registered in September, which is 39.5 percent more than in the same period last year. The information was released by the State Service for Property Issues under the Ministry of Economy.
Realtor Rustamov considers the increase in the number of Housing and Construction Cooperatives (MTK) as the reason for the revival in the property market. According to him, MTK no 10 has increased compared to the previous year, and this creates a competitive environment.
“The proliferation of new buildings will increase prices by 15-20 leads to an increase in interest. After the demolitions in different parts of the city, new houses will be built and these will be at a higher price offer will be done. The high prices are due to the fact that there are currently fewer houses for sale. When a client wants to buy a house, he cannot find a good apartment,” the realtor said.
Real estate expert Nusrat Ibrahimov explained the increase in sales in addition to the price increase with the increase in citizens’ interest in old buildings. The reason for interest is that old buildings are cheaper than new ones. “If the price of 106 square meters in new buildings is 172 thousand 200 manats on average, it is 124 thousand 500 manats in old buildings. However, if a month ago the average price of renovated new buildings was 1,725 manats per square meter, today it is 1,673 manats. The average price of a renovated newly built apartment fell from 176 thousand 576 manats to 172 thousand 185 manats. 1 km of old built and repaired houses has increased from 1 thousand 644 manats to 1 thousand 707 manats. The price of the apartment has increased from 115,000 manats to 124,554 manats,” the expert said.
Another reason for the sharp price increase in the real estate market Russia–Ukraine is a war. This is what real estate expert Elnur Farzaliyev says. According to him, after the partial mobilization was announced in Russia in September, some of the Azerbaijanis living there returned to the country, and as a result, housing prices quickly increased. The expert says that real estate prices in Baku have increased by 20 percent compared to last year.
“This situation was mainly observed in the “Khrushchevka” type apartments in the areas close to the metro in Yasamal and Narimanov districts. On the other hand, there are obsolete or dilapidated buildings that are no longer habitable and are slated for demolition. However, the lack of buyers of these buildings causes the construction work to weaken and investor companies do not invest,” the expert added.
Real estate expert Ramil Observed since the beginning of the year in the housing market of Ottoman Baku rise in price he thinks it’s uncertain when his wave will end.
“Before, if the growth was in mortgage loans, now the process is somewhat different. Russia–Ukraine of the war To Azerbaijan the effect is great. It has become difficult to bring construction materials from Russia, which has directly affected the prices,” the expert said.