The FINANCIAL — According to APA-Economics, the price hike was 25% in real estate market of Azerbaijan during January-November, said Nusrat Ibrahimov, the Executive Director of Property Market Participants Public Union.
“The rise varies for market segments. The most increase was in the secondhand house market and the least in rental housing market,” he added.
According to him, undesired accidents in construction slowed down the market activeness in August and the trend is on at present. He added that there was a 22% rise in construction material prices during the past period and the cost price of construction has risen in the country.
Experts predict relatively steady prices for the first half of 2008.
Ibrahimov said there will be no notable rise in real estate prices by late September, 2008 unless mortgage loan terms are softened.
The government-funded mortgage loans are available at 8% annually and commercial banks offer mortgage loans at 15% annually. The government is expected to cut mortgage loan rate next year.
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