What is situation in real estate market, will prices decrease? - Expert review


April 7, Fineko/abc.az. Among the spheres most affected by the pandemic are the construction sector and the real estate market.

ABC.AZ was made such a statement by expert Ramil Osmanli, when the latter was commenting on the impact of coronavirus on the real estate market.

The expert explained why the virus causes such a large damage to the real estate market: "As the cost of operations in this sphere is much higher than in other consumer markets. Observations show that all segments of the real estate market across the country are experiencing a sharp decline. The purchase and sale of apartments, land plots, and non-residential premises is restricted. The economic causes of that relate to a sharp decline in the population's income and macroeconomic factors. But at the same time, it’s also necessary to mention both administrative and psychological factors. So, in fact, a number of relevant executive authorities (Mortgage Fund, ASAN centers, etc.) are operating in this area. Limiting of activities also plays a serious role. Besides, the existing risks associated with the financial market are directed at turning the funds in population’s hands into more reliable currencies."

Osmanli pointed out that one of the factors affecting the real estate market is the reduction of cash receipts from foreign countries: "Money flows from foreign countries to Azerbaijan in non-oil directions are also limited. All these processes, of course, led to the collapse of the real estate market. It is too early to talk about specific price changes, but the course of processes also allows us to predict a decline in prices in the near future."

By Elmir Murad