Buying a house is becoming a fantasy – Prices will be even more expensive from next month |
Still 2020It was not excluded that persons engaged in building construction activities will be subject to value added and profit tax starting from 2021, as well as a sharp price increase in the construction materials market starting from 2021, which will inevitably increase the price in the housing market of the capital. Last year, the occurrence of other factors that will lead to price increase led to the increase in price being higher than expected.
According to the State Statistics Committee, in 2022, the price of apartments across the country increased by 5.8 percent compared to 2021. In particular, the price of first-hand apartments increased by 6.1 percent, and others by 5.8 percent. In the 4th quarter of 2022, compared to the corresponding period of 2021, the price of apartments increased by 8 percent. But according to experts, last year Baku The price of apartments in the city has increased more.
I wonder if apartments can become cheaper? Or, conversely, will the price continue to rise?
An expert on property matters, commenting on the situation in the housing market Ramil Osmanli said that last year was marked by a fantastic price increase. The annual price increase on the housing market was close to 30 percent, which is the highest indicator of the last 15 years: “Usually, the analysis of the years after the devaluation showed that the price change in the real estate market is adequate to the overall economic growth in Azerbaijan. That is, there were single-digit price changes. The maximum increase was 5-6 percent. But last year, a very fantastic indicator was recorded in this field.”
Our interviewer says that Baku price increase was observed in all areas of the city: “Observations show that the price of apartments increased the most 20Those up to 0 thousand manats. Baku at the highest price in town offer the apartments are located in the so-called “first zone” areas. Here, the average price of 1 square meter of apartments in new buildings reaches 7-8 thousand manats in an unrepaired condition. In the case of repair, the price is a little higher. The cheapest apartments are, of course, in the areas outside the city. This includes Khazar and Pirallahi regions. Also, Absheron in some areas of the district. “The average price of 1 square meter of apartments in these areas starts from 750-800 manats.”
Explaining the reasons for the price increase, the expert said that the increase in the volume of mortgage loans and the reconstruction works in some parts of the country have a major share. R. Osmanli believes that from the occupation free part of the funds directed to the restoration of the destroyed areas are directed to the real estate market, and as a result, the flow of money leads to a price increase in the market. At the same time, the economicpolitical–military against the background of factors, as a result of the flow of people and money to the country from Ukraine, Russia, very serious price increases in the country’s consumer market, rising inflation, etc. the reasons affect the price increase as a whole.
R. Osmanli noted that the housing market is currently stable. Both the number of buying and selling operations has decreased a bit, characteristic of the beginning of the year, and the price increase in this direction has also stopped: “But I think that the situation will probably change after the activation of certain market participants. That still won’t happen until the end of this month. Probably, we will be able to observe dynamics in the housing market from the first half of February.”
Expert Elnur Farzaliyev shared his colleague’s opinion and said that there was a serious revival in the real estate market last year. He said that the price increase was mostly in old buildings – “Khrushchev” project and other buildings that have reached the end of their service life. Thus, the market value of the apartment in the newly built buildings, which is given to the citizen as a replacement during the demolition, is higher than in the old buildings. Even in this respect to apartments demand increased. If we look at the prices today, if two years ago, one-room “Khrushov” project apartment could be bought for 60-65 thousand manats in old buildings near any subway stations of Baku, today that price is higher than about 80 thousand manats. I think that the price increase in old buildings is artificial.”
E. Farzaliyev on last year’s price increase Russia–Ukraine He also touched on the role of the war. However, his opinion about this is different from his colleague: “The idea was formed that there will be a mass flow from these countries and they will buy those apartments with a discount. Of course, the expectations did not come true. The flow was too low. Most of the arrivals are Azerbaijanis, most of whom live in Baku and Azerbaijan have properties in the region. The number of people who bought apartments in Azerbaijan from these countries made up a small part of the total sales portfolio.
E. Farzaliyev also emphasized that the price increase is observed in newly built buildings. The reason is that there are limited land plots for the construction of multi-apartment buildings in the capital, including in areas close to the center: “As a result, there are not as many newly built buildings as before. The buildings being built are old, 4-5 storey buildings demolished and built in their place. This in itself increases the cost of construction and leads to an increase in price. Expensive metro stations, in the areas close to the center, at the same time, in the city of Sumgayit, Absheron refers to new buildings built in the district. About a few years ago, one square meter of an unrenovated apartment in a newly built building in Khiralan could be bought for 700 manats, but now it costs more than 900 manats. offer is done”.
The expert added that in addition to apartments, there was also a price increase in private courtyard houses. Relatively cheap to apartments As for E. Farzaliyev, he noted that such real estates, as a rule, are located outside the city offer is done. In the Baku suburbs, it is found only in private houses, which do not have an “exit”.
According to the expert, the price increase will continue in newly built buildings. Thus, both the price of construction materials has increased and their price is increasing due to the fact that the plots of land suitable for construction are running out. This increases the cost of construction. For this reason, construction companies are no longer interested in building new buildings in the capital. If the buildings start to be rebuilt, the price will be higher. As people are not used to these prices, construction companies want an average price to be formed in the market and then start construction work: “A few months ago, news spread that a large area of land in the capital would be demolished. Although this project belongs to the state, the demolition works will be carried out by construction companies belonging to the private sector. Of course, a fertile market and a mass of buyers must be formed for them to start demolition work and build a new building on the site. That is, the buildings to be built should be sold so that their work is not left unfinished.” (Caucasusinfo)
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