By AZE.US
Apartment prices in Sumgayit have risen sharply, with one-bedroom units in older buildings now listed for as much as 65,000 manats ($38,235).
Similar apartments were offered for 55,000-58,000 manats ($32,350-$34,120) only two months ago. Current asking prices have reached 60,000-65,000 manats ($35,295-$38,235), according to local market participants.
That represents an increase of 5,000-10,000 manats ($2,940-$5,880) for some properties. Real estate specialists estimate that housing prices in the city have increased by about 10-12% over the past three months.
The steepest gains are being reported in older housing stock, including Soviet-era Khrushchev-style buildings. Demand is particularly strong for smaller apartments with lower overall purchase prices.
Why Older Apartments Are Becoming More Expensive
Experts attribute the rise to the balance between supply and demand, broader economic conditions and higher prices in newly built residential complexes.
Older buildings are also frequently located in established neighborhoods close to schools, kindergartens, shops, public transportation and other services. For many buyers, that infrastructure outweighs concerns about the age of the property.
Smaller floor plans also keep the total price below that of larger apartments in new developments, making older one-bedroom units attractive to buyers with limited budgets.
One Sumgayit resident said apartments she had considered around three months ago were now being offered for up to 10,000 manats more.
Prices are also rising in newer buildings. Developers and sellers are attempting to maintain demand by offering mortgages, credit arrangements and installment plans.
Buyers Wait to See What Happens Next
Despite the higher asking prices, market participants say activity has slowed over the past 10-15 days. Some potential buyers have postponed purchases while they wait to see whether prices continue climbing or undergo a correction.
The increase has placed additional pressure on households with fixed budgets. Until recently, 55,000-58,000 manats was enough to consider a one-bedroom apartment in an older Sumgayit building. Comparable properties are now approaching 65,000 manats.
AZE.US