The analysis of development trends in the Azerbaijani construction industry allows evaluating the enormous potential of the industry. According to the Ministry of Economic Development, the Azerbaijani housing stock has increased by 30 percent for the past 20 years.
The volume of construction work increased by 12.2 percent to 3.38 billion manat in Azerbaijan in January-June 2013 compared to the same period of 2012, the Azerbaijani State Statistics Committee reported.
According to the report, around 68 percent of the total volume of construction work accounted for the primary construction, reconstruction and expansion, 17.7 percent - for overhaul, 2.4 percent - for current repair and 11.9 percent - for other construction work.
Around 78 percent of the construction work was carried out by non-state construction companies.
Main indicators of construction sector in Azerbaijan in January-June 2013
|
Jan.-June 2013 |
Compared to Jan.-June 2012 |
|
|
Commissioned: residential buildings, total area, thousand sq. m |
917,9 |
115,2 |
|
Clinics and health centers |
130 |
19,5 |
|
Secondary schools, educational facilities |
4654 |
12,9 times |
|
Pre-school educational institutions, facilities |
737 |
2,6 times |
|
Clubs |
864 |
6,2 times |
|
Funds directed to fixed capital, in mln manat |
7361,8 |
122,9 |
|
Including: |
3849,5 |
138,8 |
|
- for the construction of facilities in service sector |
3512,3 |
109,2 |
|
- for construction and installation work |
4776,2 |
139,6 |
Source: State Statistics Committee
In June 2013, housing commissioning volumes in Azerbaijan increased by 63.1 percent compared to May. According to the State Statistics Committee, 253,500 square meters of housing (the best index in 2013) were commissioned in June 2013 compared to 155,400 square meters in May this year and 250,800 square meters in June 2012. The best index in 2012 was stressed in June (250,800 square meters).
Around 917,900 square meters of housing were commissioned in January-June 2013 or 9.4 percent more than in the same period of 2012 (838,800 square meters).
Housing commissioning (547,200 square meters) was equivalent to 147.6 percent of the level of the first quarter (370,700 square meters) in the second quarter of 2013.
Building material market
The companies engaged in producing building materials in Azerbaijan, made goods worth 173.5 million manat in January-June 2013, which is 24.6 per cent more than the same period of 2012, the Azerbaijani State Statistics Committee said.
According to the information, the companies produced 976,800 tons of cement in January-June 2013 (an increase of 3.4 per cent per year), 99,700 tons of construction gypsum (increase of 1.9 times), 658,800 tons of ready-mixed concrete (increase of 8.3 per cent).
The stocks of construction materials worth 17.6 million manat, which is 5.2 per cent of the total finished goods in the country were created at the warehouses of enterprises by July 1, 2013.
Primary housing market
The prices on Baku's primary housing market increased by 1.2 percent to 884.1 manat per square meter in June compared to the previous month, "Property Market Participants" said.
The prices increased by 3.1 percent compared to the previous quarter and by 10.2 percent compared to the same period of last year, the organization said.
Housing prices in Baku shrank by 26 percent compared to the peak crisis period (September 2008) and increased by 5.3 percent compared to early 2013.
In June, the number of new buildings put on the market increased from 396 to 400 units. The number of construction companies decreased by two to 129.
Secondary housing market
The average cost of secondary housing increased by 0.9 percent in Baku in June compared to the previous month and amounted to $1,286 per square meter, "Property Market Participants" Public Association's report following the monitoring results of Baku's real estate market said.
The average cost of housing on the secondary market increased by 31.2 percent compared to the same period of 2012.
According to the monitoring results, the volume of supply on the secondary housing market declined by 3.1 percent in June. The number of apartments offered for sale, decreased to 5,000.
The share of Yasamal, Nasimi, Narimanov and Khatai districts in a total supply portfolio was 78.7 percent. The formation of a portfolio due to these four districts for a long time is associated with the appearance of new buildings on the market. The research shows that a portfolio of supply on the primary market is mainly formed by four districts.
The secondary housing share proposed for the market at a price lower than the average, amounted to 53.2 percent. The average room rate on the secondary market in June was 2.80, the average price of each room - $49,841, apartment - $11,7521 in June.
The dynamics of concluding the secondary housing purchase-sale deals increased by 1.7 percent per month.