Analysis: Price of new buildings in Baku up by 5%

Baku. 14 April. REPORT.AZ/ There was an increase in prices in residential real estate market of Baku from December 2015 to February 2016 by an average of 6%. So, at the beginning of December last year, the average cost per square meter was 1332 manats, and in February of 2016 - 1409 manats. 

Report informs, report of the AS Group Investment Company based on data from the real estate portal yeniemlak.az, states.

Experts of AS Group Investment noted that the rise in prices on the market of new buildings is almost two times faster than the growth of the old housing - 4.8% and 2.75% respectively.This difference is due to two main reasons: "Firstly, it is the quality factor.Thus, the prices of old housing, though traditionally higher than the prices for new buildings, but the difference gradually narrowing.So, if in 2016 old housing costs are higher by 6% than new buildings, this difference was 15% in January 2014.

Secondly, it is a factor of the mortgage market. payment by installments offered by building companies in the primary market of Baku, increase the availability of this type of housing.