The intensity in the sale of multi-story apartment buildings continues for apartments sold in Baku and Absheron district. Although sales under credit terms are expensive, proper documentation, utility provision, and the fulfillment of other necessary conditions make these apartments prominent in the market. However, the absence of an extract (title deed) in some private residential houses significantly affects the price.
Property expert Elnur Farzaliyev stated in his declaration to Modern.az that when evaluating the market value of any property, the market value of the land on which the property is located is primarily taken into account. This can be a different amount depending on the area.
Currently, the most expensive land plot in the Baku suburbs is in Khirdalan. In Khirdalan, the price of land plots with extracts (title deeds) ranges from 20,000 to 50,000 manats.
The expert noted that the costs for apartment construction are calculated at approximately 600-1000 manats per square meter. This is applied as a standard price range everywhere:
"Currently, cheap houses are private residential houses without an extract (title deed). In fact, there are private residential houses without an extract in the Baku and Absheron area. The absence of an extract depreciates the land price by up to 50%. Since official buying and selling is not possible, properties belonging to this category are bought and sold based on a power of attorney. Due to the risky process, the price is also set at a lower amount. Although these types of land plots have been used as residential areas for over a hundred years, their documentation is not possible".
The expert attributed areas such as oil fields, areas where high-voltage power lines pass and their safety zones, parts close to railway lines, agricultural lands, etc., to this type of area. There are hundreds of thousands of such properties in Baku and Absheron".
Elnur Farzaliyev noted that the decrees of district executive authorities, municipalities, and documents from the garden department are not decisive documents for the construction of a residential house:
"An amnesty should be applied in accordance with the current situation. As a result, a large number of houses built would be provided with extracts (title deeds). This practice exists in foreign countries. It was also applied in Georgia last year. On the other hand, full documentation will enable the state to apply land and property taxes in accordance with the law. The absence of relevant property documents also complicates inheritance and other divisions".
The expert emphasized that expensive areas include the central parts of the capital, Badamdar, the area called “Varovski”, Teymur Aliyev, Mammad Araz, and other streets. In central areas, the price per square meter of apartments ranges from 4000-7000 manats:
"A decrease in prices in the apartment market is observed in multi-story buildings located in central and near-central areas, specifically for apartments with large areas and many rooms. The reason for this is their high price due to their size. Buyers prefer smaller apartments for lower costs. The purchasing power for properties valued over one million is very low. Nevertheless, the demand for multi-story apartment buildings is higher compared to private residential houses. According to statistics from the last 4-5 years, over 60% of sold properties with extracts (title deeds) are houses sold under various credit terms. More precisely, apartments purchased under mortgage terms prevail".
