Price growth is expected at Baku real estate market


January 7, Fineko/ "This year, as well as in 2021, prices are expected to increase in the real estate market of Baku," ABC.AZ reports, citing real estate market expert Elnur Farzaliyev.

He said that the reason for this is both the rise in prices for building materials and the shortage of land plots suitable for construction in the capital.

"On the other hand, now construction companies are more likely to demolish old 4-5-storey buildings that have already worked out their service life, and build new ones in their place. At this time, their earnings become less than before. Because when a building is demolished, the construction company pays rent to the residents of this building until the building is built and commissioned. Then these residents are provided with a more spacious, fully renovated apartment. If there are 60 apartments in one 4-block five-storey building, then when it is demolished and a new building is built in its place, the company must give residents more than half of the apartments in the building, and sell the rest and make a profit. Since it is not profitable for companies, they will raise prices per square meter of apartments,” he said.