How will the expansion of reconstruction works in Karabakh affect the real estate market?

The expansion of restoration and construction works in the territories freed from occupation will lead to revival in the real estate market of Azerbaijan.

Vugar Oruj, Chairman of the Azerbaijan Appraisal Society (AQC), said this in his statement to “Report”.

He said that the work done in Karabakh is a serious incentive for the market.

“Investment in those areas improves the economic situation in the country and creates an incentive for economic development. In any country where there is an activity aimed at economic development, there is a revival in the price of real estate. If we look at the history of Azerbaijan’s development over the last 30 years, we will see that in the periods in which there were signs of economic development due to oil revenues or certain economic projects, real estate prices were higher in those periods than in other periods. Currently, very serious work is being done in Karabakh in the direction of infrastructure restoration, and investment projects are being implemented by both local and foreign companies. This can be the driving force for the beginning of the revival process in the real estate market in those areas and other regions of the republic. These works have just started and we do not feel the impact of these works directly in our daily life. But if the activity in the direction of investment in those areas becomes stronger, this can be an incentive for a very serious increase in the price of real estate. From this point of view, the innovations currently taking place in the regions of Azerbaijan, including the liberated areas, are directly related to the real estate market and can play the role of a very serious stimulus for the revival of the market.”

V. Oruj said that the works done in Karabakh will increase the rent prices of real estate.

“Infrastructure restoration in any area takes place at the expense of manpower and equipment. This leads to an increase in the rental price of houses and the rental price of equipment in places close to those areas. Currently, the price of construction equipment has increased by 25-30%. Attracting a new labor force to our liberated areas, creating a business environment in those areas and taking steps to restore infrastructure will lead to an increase in rent prices in the surrounding areas. At present, the state has created certain guarantees for the living of that labor force in the regions. But when this process takes a larger scale, we will witness that it will be reflected in the rent prices.”

At the same time, according to the expert, there is a food crisis, devaluation and other economic problems in the world: “These problems can compensate for the possible revival in the real estate market. If it were not for the listed economic problems, the revival in the real estate market would be more pronounced and more extensive. it would be,” added the chairman of the AQC.