Azerbaijan, Baku, Dec. 11 / Trend ,
U.Ismayilova/ There are about 800
construction companies in Azerbaijan, and many of them have begun to suspend their
activities due to lack of funds caused by suspension of bank lending in the
light of the global financial crisis.
Trend interviews participants of Azerbaijani real estate market about
their expectations in anticipation of 2009.
- Marketing Director of the Caspian Property Services appraisal company Elnur
Azadov:
- We should not expect drastic
changes in the Azerbaijani real estate market until April-May 2009, as the
financial crisis usually lasts five to six months. I think this time will not
be an exception - the situation in the world market will stabilize since May.
Currently, there is stagnation in the market, but despite this situation the
sellers of apartments who are in immediate need for cash will sell their
property. In May 2009, the housing market will begin to increase, but prices will
not drop. During this period a price balance will occur in the market. But if
the global financial crisis does not begin to stabilize, then a decline in
prices is possible.
- Director General of the MBA Group consulting company Nusrat Ibrahimov:
- In the first half of 2009, Azerbaijan's real estate market will remain at the
same level as today. Drastic changes are not expected due to the influence of
the global financial crisis. The activity of the market will start, albeit
weak, but will be growing by summer by about 1.7-2% a month. Difference in market
activity between the second half of 2008 and the second half of 2009 will total
20%. That is, the market will get permanently stabilized by the end of next
year. Prices will gradually continue to fall by 1.5-2% a month in the first
half of the year, but by the end of the year they will begin to rise in line
with activity.
- Executive Director of the NGO Participants of Real Estate Market Ramil
Osmanov:
- Unlike other economic areas, real estate market is difficult to predict
because its development depends on two factors: investment and private sales. I
think deterioration of the situation is expected in the primary market, where
development is dependent on investors, because the number of construction
companies in Azerbaijan is beginning to reduce right now and only competitive
ones remain. Private sale on the secondary market, including land and
commercial market, depend on individuals who are now not selling anything.
Since the beginning of the financial crisis construction fell by 30% in Azerbaijan and housing prices may decrease by 10-15% next year.
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