Real estate prices will decline in Azerbaijan

Baku. 8 February. REPORT.AZ/ Current prices in real estate market are expected to reduce by 13-15%.

Analytical Group of Report News Agency says, in 2016 the growth in US-dollar exchange rate from 1.65 AZN/USD to 1.95 AZN/USD led to fall in real estate prices by 20% in US-dollar equivalent, but in AZN equivalent real estate prices not decreased.

"But currently there is a rapid decline of the US-dollar in Azerbaijan. Thus, selling price of US dollar in banks was 1.96 AZN / USD last week and after the decline by 7% it made 1.82 AZN/USD.This process may continue further and stabilize at the level of 1,65-1,70 AZN/USD.As a result,against the background of US dollar depreciation property owners will make larger discounts due to the weakening in demand and the value of the property will fall in manat equivalent", the analysts believe.

"In 2017 the state budget of Azerbaijan has managed to reduce costs enough. This in turn affects the income of the population. At the same time, the sale proposals in the real estate market are growing:

Notably, various new residential complexes are being built in many parts of Baku. This will increase proposal on market and lead to fall in prices. Fall in real estate prices will be felt in April", the group experts say.