Buying flat in new building sometimes provides increasing of capital on 100%
The real estate was always considered as the reliable investment tool for preservation and enhancement of the capital. Thus the growth of a financial stream in the primary market of real estate always favorably influenced the general economic development of society. It isn't casual that in days of the Great Depression the U.S. Government paid considerable attention to the development of housing construction, in particular, on the basis of mortgage lending.
Thus the development of construction branch has the multilateral effect and affects employment of the population, improvement, and strengthening of the financial market, production of construction materials, improvement of a social situation in general as many people solve the housing problems.
According to priorities of the Azerbaijan's government on the development of not oil sector, the growth of investment into construction branch acquires relevance. It is caused by factors about which was already told above, and in particular - a great demand on housing. Let’s address to statistical data. According to the State Committee of Statistics of Azerbaijan in 2001 average ratio between housing stock area and population was 14,86 sq.m on each citizen. Since then and to 2013 the area of housing stock in Azerbaijan increased by 45,8 million sq.m or on 38%. But, even despite this incredibly high speed of construction, area of housing on each citizen in the country increased only by 2,92 sq.m and following the results of 2013 made 17,78 sq.m.
If to consider a question from the point of view of buyers, it is favorable to them to get apartments in the new buildings which are at an initial stage of construction. In particular, according to the marketing specialist of the "AS Group Investment" company Emil Rakhimov, usually is favourable to invest in real estate in primary housing market on initial stage of construction when the price of square meter is very attractive: "After completion of construction of the house of price for apartments increase on average by 40-60%, and at times and up to 100% of cost which was offered by the builder at an initial stage of implementation of the project. Thereby primary housing market in a stage of construction becomes attractive in present conditions doubly: for many extends not only availability of acquisition of the apartment, but also opportunity to increase greatly the savings".
Yes, the construction like oil has a binding to the dollar. But same in turn means, what even certain fluctuations in exchange rates guarantee the preservation of the money invested in real estate if to master them correctly. Here that the marketing specialist of "AS Group Investment" about it speaks: "In this case, it is important to understand the market and "to stake" on options which minimize risks and guarantee to buyers success. Among aspects to which it is necessary to pay attention, the reputation of the construction company and contractual conditions offered by it. In particular, payments by installments and the credits for a period of 1-2 years are very interesting to investors. And if they are still offered with a binding to the national currency and for the longer period of time, it is the very favorable investment of money. Such offers are capable of involving serious inflow of the capital on primary market of the residential real estate". The construction sector of Azerbaijan has enough opportunities for accumulation of and amounts of works, thanks to the pursued state policy in this sphere. Lately in the country appeared a lot of highly skilled construction companies capable of carrying out major construction works of any complexity. It is confirmed eloquently by official statistics. According to the same State Committee of Statistics, in 2014 in Azerbaijan was executed construction works for the sum of 13,3 billion manats. In comparison with 2013 this sum increased by 11,8%. 63,9% of the state and private investments or 11,2 billion manats were spent for production of construction production and construction of inhabited, social and commercial objects.
Ample opportunities of branch and a great demand on real estate in 2015, undoubtedly will provide essential inflow of the capital on primary housing market that, in turn, can play a positive role in further development of national economy, in particular it’s not oil sector.
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