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Real estate expert: Prices in Azerbaijan's real estate market gradually falling

Real estate expert: Prices in Azerbaijan's real estate market gradually falling

Economy
07 April 2020, 16:15 71
The quarantine regime applied in Azerbaijan in connection with the coronavirus pandemic will affect the real estate market, as well as other areas, Director General of the MBA Consulting Group company, real estate expert Nusrat Ibrahimov told Trend.
He noted that in comparison with other areas, the impact of coronavirus on the real estate market will be noticed gradually.
"Next month we will feel this. It will be manifested both in apartment prices, activity, and in the volume of the housing portfolio. But today, prices in the real estate market are already starting to gradually fall,” Ibrahimov said.
The expert emphasized that the impact of coronavirus on the real estate market will depend on the duration of the quarantine regime.
"Depending on sequence of events, this effect can be short-term, medium-term and long-term. The extent of their impact, of course, is different. If it is short-term (1-2 months), it will not have a severe impact. If it is medium-term (2-3 months) then it will affect the market, and a decrease in prices by about 10-12 percent will be observed. If it will be long-term (more than 3 months, 5 months, up to 1 year), prices may drop by 20-25 percent,” Ibrahimov stressed.
He added that after the elimination of the coronavirus pandemic and its effects, the real estate market will gradually recover.
Naturally, in 2-3 months after the effect of the virus is eliminated, the quarantine regime will be canceled, the market will restore its previous state, and then growth in market activity is expected, the expert concluded.