Prices in secondary housing market decreased

Prices in secondary housing market decreased
Experts: Stagnation in the property market is a result of devaluation and fluctuations in oil prices

Baku. 22 May. REPORT.AZ/ Average price of housing on the secondary market decreased by 6% and amounted to 1689 dollars per square meter, in manat equivalent by 6,12%, and made 1,770 manats per square meter.

As Report informs referring to MBA Ltd consulting company, in March, there was an increase in housing prices in the national currency by 14.0%, but the decline in prices in April to 6.12% due to the fact that after the February devaluation of the population to invest in real estate, which had a major impact on price growth in March. In the following months there was a decrease of purchasing power, which in turn influenced the decline in prices.

"Another reason is the high level of housing prices in the country. The housing market has been a relative decline in prices from a peak. It's worth noting that the decline in oil prices in the world market also influenced the decline in the real estate market. If we consider the dependence of the index of prices real estate to oil prices, we can see that if in April last year, the figure was US $ 19.15 / sq. m., today it is 27.11 dollars/sq. m. Therefore, the current stagnation in the property market can be explained devaluations and fluctuations in oil prices", the company said.

Over the past two months as a result of the processes occurring in the market has been declining total portfolio of proposals on the secondary housing market. In April, the volume of this market segment offers decreased by 1.47%. In March the total number of proposals was 1 752 in April, this figure dropped to 1 726. The total number of proposals on the secondary housing market in comparison with the same period last year decreased by 18.7%. In general, the portfolio of proposals, as in previous months, the vast majority are Yasamal, Nasimi, Narimanov and Binagadi district, which accounted for 66.8%.

Most offered in this market segment apartments are sold at a price below US $ 2000 / sq. m., and they accounted for 81.5% of the total portfolio of offerings. The average market price for the apartment is 1480 dollars / sq. m. The share of apartments for the price of 2 000 - 2 500 USD/sq. m. is 13.75% of the total portfolio offers. The average market price for these apartments of 2 $ -160 / sq. m. The share of expensive apartments at a price above US $2500/sq. m. 4.75%. The average market price for the apartment is 3000 dollars/sq. m.

In April, reduced the number of two-, three-, and five-room apartments. Most declined proposals for five-room apartment, at the same time an increase in proposals for the one- and two-bedroom apartment. Also, the biggest drop in the price of two-, three- and five-room apartments, prices for one- and four-room apartments fell respectively by 3.9% and 6.0%.

According to ongoing research, the share of apartments in homes with "experimental", "Leningrad" plan, "Khrushchev" and renovated buildings in the overall portfolio of proposals was respectively 12.23%, 13.83%, 11.26% and 42.82%. Last month, there was a relative decline in prices in the homes of various designing. The largest decline in prices recorded in the "Italian" (-9.46%).

The apartments at below average cost per square meter. m. (1,648 dollars) constitute 54% of the total portfolio. The average area of apartments is 82.57 square meters. m., 2.43 average number of rooms, the average cost of each room 56 108 dollars, the average price of apartments 136 343 dollars.

During the reporting month, the price index on the secondary market decreased by 0.47 points in comparison with March and amounted to 7.51.

On the secondary market, the highest price per square meter is offered for one-bedroom apartment with architect's project. Cost is near the metro station "Icheri Sheher" apartments with excellent repair a total area of 43 square meters. m was 4 $ 600 / sq. m. The cheapest apartment was recorded in the Alat settlement, Garadagh district. The cost of two-bedroom apartment "experimental" planning a total area of 70 square meters. meter was $ 700/sq. m.

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