The worsening of the housing problem in the Republic of Azerbaijan; Houses in Baku become more expensive by several thousand manats every month

, the price of housing is one of the issues that almost all people of the Republic of Azerbaijan, whether with low or high income, consider it a problem. The difference between housing prices and people’s income has been one of the main topics of discussion in this country for years.

In recent years, the problem has become more acute and finally The increase in inflation has increased housing prices by tens of thousands of manats. In this way, the number of people who achieve their dream of buying their own home is gradually decreasing. it is not complete. In addition, the figures presented by “Voqar Aruj”, the head of the Azerbaijan Evaluation Association, in an interview with the media today, have a clear picture of the state of this field in the country.

He said: In January of this year, the prices in the real estate market of the capital have increased by 10-11% compared to the same period last year, and by 2-3% compared to December.

In other words, housing prices in January were even several thousand manats higher than in December. Considering that the inflation rate is higher in 2022, it seems that housing prices have increased by at least 20 to 30 percent over the past two years.

land has become expensive

from comments The official of the Azerbaijan Appraisal Association is clear that the increase in the price of agricultural land is more. In the regions, a significant increase in the price of agricultural land is observed. It is private houses. According to him, private residential houses in Baku and its suburbs have become more expensive by 15-18%. The price increase in agricultural land is about 40 to 45 percent and in residential land is about 20 to 25 percent. Newly built apartments in Baku are at the level of 10-12% compared to last year. This expert considers the lack of construction space and the difficulties in obtaining it as the main reasons for this. Entrepreneurs also raise prices so as not to reduce their profits. In non-residential areas, the price increase is not so high. According to this expert, this is also a sign of lack of dynamism in creating new business opportunities.

Houses are more expensive regardless of location

Another point that the Azerbaijan Appraisal Association pays attention to does, the sharp increase in housing prices regardless of the location. Vuqar Aruj said that there are places outside the center where a square meter apartment is offered at the price in the center.

Such cases are especially in Areas near the metro stations “Ahmedali”, “Khalqlar Dostlugu”, “Hazi Aslanov”, “Narimanov” are very common. The discussion of the location of the apartment and the review of other criteria are now discussed. This indicates that there is a very serious price turmoil in the real estate market, there is no buying and selling commensurate with this hype and noise, although there are few sales, but the prices are constantly increasing.

Why are houses expensive in Baku?

The high cost of housing in the capital of the Republic of Azerbaijan is not only caused by the conditions of the real estate market, but also brings problems related to the structure of the country’s economy. One of the most important of them is the severe regional inequality in Azerbaijan. Official statistics also confirm the low number of jobs and income in the non-capital areas of this country. In such a situation, of course, many people leave the regions and go to Baku. Therefore, the need for more houses in the capital is felt. Although there is high demand, the lack of suitable construction sites leads to high prices. In addition, in Azerbaijan, there are sharp infrastructural differences between Baku and other regions and cities of the country, as well as between the central and near-central regions of Baku and the outskirts of Baku. In this regard, the government of Azerbaijan is trying to achieve a successful socio-economic development policy of the country’s regions and to create similar infrastructure facilities in all parts of the Republic of Azerbaijan. This is important along with many problems in terms of solving the problems of the housing market. It is the underdevelopment of the securities market and the inappropriate business environment. In such a situation, the relatively wealthy class with extra funds prefers to buy real estate as a traditional investment tool. This in turn leads to an ever-higher demand in the market.

Competition

If the stock market of the Republic of Azerbaijan was developed and there were competitive business opportunities, people would invest their capital in this The fields also guided. It is no coincidence that the officials arrested in this country on charges of corruption in recent years have dozens of apartments. However, in a typical business environment, money is invested in developing new business areas, not in real estate that generates passive income. In this way, new jobs are opened and added value is created. In this regard, the inappropriateness of the business environment in Azerbaijan also affects the increase in housing prices. affect housing. However, joining this sector requires large investments. A very limited circle in the Republic of Azerbaijan has enough funds to provide these funds. In this regard, increasing access to financial resources can lead to improved competition in the housing market and, as a result, improved prices. Although the government of Azerbaijan recently took certain measures. has done to increase housing ownership, but these measures do not seem to have a significant impact on the results. After all, housing is expensive and people’s income is not enough. If the average monthly salary in this country does not reach a thousand manats, buying a house with this low income becomes a raw dream. The lack of funds allocated by the government of Azerbaijan to projects related to increasing the supply of housing, as well as only 30% of the economically active population of this country have an official employment contract, which has reduced the advantage of the mechanisms implemented by the government of Azerbaijan.

end of message/