OREANDA-NEWS. March 16, 2012. As of 1 March the prices at the real estate market of Baku fell by 1.77%.

MBA Group consulting company’s general director Nusret Ibrahimov says that in February there was observed a decline in prices in all segments of the capital’s real estate market.

"Prices at the primary housing market in February fell by 1.9%, at the secondary housing market by 2.4%, at the land market by 0.4%, at the market of commercial buildings by 2.4%. In general, market prices in February fell by 1.77%, but over the 2011 same period increased by 6.23%," Ibrahimov said.

He said that currently construction costs in Baku were 338 manats per sq m versus 230 manats in the pre-crisis period (September 2008).

"The increase in cost is one of the causes of high prices in the housing market. There are also other factors affecting prices – growth of prices for construction materials and unofficial costs," Ibrahimov said.

In reality, the increase in the cost of housing construction (by 46.9% against the pre-crisis level) outruns the post-crisis recovery in housing prices.