In the first quarter of this year, prices in Baku's rental housing market (both in new and old buildings) had increased. So what is the current situation? Has the beginning of the summer season affected the rental market? Has the demand for rental apartments decreased against the backdrop of the end of the academic year in higher education institutions and some students returning to their districts? Has this factor caused any change in prices?
Regarding the topic, Medianews.az was told by Vugar Oruc, chairman of the Azerbaijan Society of Appraisers, that real estate has become such a priority in terms of investment that now, even in summer months, no decrease is observed in rental and sales prices: “Students who stay in rentals no longer behave as before in the summer season. Most of them keep the rent of those apartments. Some students find suitable jobs, stay in Baku and increase their budgets, or attend various courses to improve their skills and thus continue living in the apartments they rent in the capital. Some students also keep rental apartments during the summer to avoid rental problems, including facing higher prices when the new academic year begins, that is, in September. In this regard, most rental apartments do not actually become vacant.”
It can no longer be said that prices become cheaper or there is an abundance of rental apartments in summer. Simply, more sharp price increases do not occur during this period. The upward price trend occurs at the end of August and the beginning of September. The seasonal price increase in the rental segment of the real estate market will mostly be related to student applications.”
According to Vugar Oruc, the situation in old buildings is somewhat different: “It is more difficult to rent out apartments in old buildings compared to new ones, because buyers mostly prefer newer buildings. Therefore, sometimes special discounts and concessions occur in old buildings during the summer season. But this does not mean serious price reductions. Because there are the months of August and September ahead, when prices will 'flare up', meaning increase. All expectations are directed towards these months.”
Apartments close to higher education institution buildings, metro stations, and bus stops with high transport accessibility have always been a priority. Even though it is summer now, no price decline is observed for such apartments. Generally, in the current situation, price decreases in almost no segment of the real estate market (whether sales or rentals, objects, apartments or individual houses) can be discussed. Because the current economic conditions dictate an increase in prices.”
Naile Gasimova,