OREANDA-NEWS. January 29, 2010. REMP reports that along with growth recession in construction sector, demand and purchasing capacity at the market decreased and that influences the prices. The global crisis impact in Azerbaijan started telling on in September 2008, and precisely in this period tendency of dynamics downtrend occurred.

“As a result, the primary housing market prices in 2009 fell by 17.5%, and from the beginning of the crisis by 23.6%, at the secondary housing market by 14.2% and 27.1%, at land market by 14.5% and 40.2% respectively, at non-residential areas purchasing prices dropped in 2009 by 10.8%, rented areas by 11.5%, and from the start of the crisis purchasing prices by 18.3% and rent by 18.4%.

At the market of building materials a 21.1% rise was registered in early 2009 and from the start of the crisis prices were cut by 30.3%. As a whole, prices at the real estate market in 2009 dropped by 15.2% and from the beginning of the crisis by 26.1%,” REMP says.

From the second half of 2009 activity of drawing of apartment and private houses to mortgage to the process increased partly, and before the end of the third quarter of 2009 it was registered rise in prices at the secondary housing market, but from the start of the fourth quarter prices stabilized again and average prices started falling gradually.

“As a whole, at the real estate market, except secondary and non-residential housing market, it was observed liquidity downtrend. Compared with 2008, dynamics of signing of agreements in 2009 more than halved, and quantity of those who applied to the market by 69%. One of the gravest problems of the market was limitation of cash. Real estate owners, construction companies and realtors suffered from that most of all,” REMP informed.

According to Association’s forecast, increase of wages can tell on purchasing capacity in the future.

“In 2009 average salary rose 19% and reached 298 manats that will have impact on potential capacities of the market. Surveys show that ratio of average salary to apartments of the secondary market is 0.30, primary market - 0.39, non-residential areas - 0.12, land areas - 2.36. These indicators are 2.5-3 fold higher than the 2008 figures,” the REMP reported.