As a result of reducing the construction of new buildings, it is predicted that apartment prices may increase.
Official figures show a decline in investment, as well as the number and area in the construction of apartments in Azerbaijan.
For the third year in a row, there is a decrease tendency in the number of residential houses commissioned in our country. 2 million 403 thousand square meters area in 2013, 2 million 197 thousand square meters area in 2014, 1 million 932 thousand square meters area in 2015 have been commissioned. In the first half of this year, the area of apartments that commissioned decreased by 11.8% and amounted to 767.7 thousand square meters. According to the State Statistical Committee, the number of flats that commissioned due to all financial sources is decreasing. In 2013, 21.1 thousand apartments were commissioned, but in 2015 this figure decreased to 16.2 thousand. The number of apartments that commissioned due to institutions and organizations owned by state property fell sharply. In 2013, 8.3 thousand apartments commissioned by state-owned companies, but in 2015 this figure fell to 2.4 thousand. The number of apartments commissioned by private companies also decreased. Private companies commissioned 14.3 thousand apartments in 2013, and 13.8 thousand apartments in 2014.
Over the past 2 years, the number of apartments commissioned at the expense of the population fell from 13.1 thousand to 12.1 thousand. In Azerbaijan, 1.7 apartments fall for every 1000 people. This indicator was 2.3. The main reason for the decrease in the construction of apartments is the reduction of funds allocated for this area. This process has shown itself in public, private, and personal sector. Obviously, the decrease in the construction of apartments due to public funds is greater. The decrease in the construction of apartments, mainly, is observed in urban areas. In 2013 in urban areas was built 1 million 567 thousand square meters, but in 2014 that figure dropped to 1 million 505 square meters, and in 2015 it was 1 million 191 square meters.
EACH PERSON GETS 12 SQ.M. LIVING AREA.
In contrast to the quality indicators, there are no improvements in the quantity indicators. For each person of the population, the total area is 17.8 square meters, and the living area is 12 square meters as was in the previous years.
In our country the construction of apartments was not able to reach the working volume of the 1990s. According to the data of 1990, 34.3 thousand apartments were built in one year, 29 thousand for 1991, 24.5 thousand for 1992, 17.1 thousand for 1993. For four years, 105 thousand apartments were built, so many apartments could be built in the last 6 years only.
In early 1990, the population was 7.2 million people, and now is 9.7 million people. Against the background of increasing demand, the increase in the construction of apartments is inadequate.
The reduction in the construction of new buildings or the deposition associated with the last economic stagnation indicates an increase in the prices of apartments in the following years before a large potential need. It is very likely that the stagnation in value is temporary, prices will not be able to fall even further. After eliminating the uncertainty in the market, an increase in the purchase of apartments and a slow rise in prices are expected.
The figures for the construction of apartments and the existing prices give a basis to say that today is the right time to buy an apartment, prices can be the lowest right now. Currently, only a few construction companies offer a mortgage credit without prepayment, with an annual 10%, for a period of 20 years. Using this opportunity you can easily become the owner of a new apartment.