AZE.US
Azerbaijan may introduce a new control mechanism for real estate purchase and sale transactions.
The proposal involves mandatory preliminary valuation in cases where the price stated in transaction documents raises doubts and appears significantly higher or lower than the real market value.
Under the proposal put forward by the Chamber of Appraisers, if a notary suspects that the price of a commercial property has been artificially inflated or understated, the documents may be sent for valuation.
Vugar Oruj, chairman of the board of the Azerbaijan Society of Appraisers, said similar proposals had been discussed earlier. According to him, the purpose of the mechanism is to help state bodies and notary offices obtain more accurate information when registering property rights and to ensure that transactions are carried out based on real market value.
Oruj said mandatory valuation would not directly lead to an increase or decrease in real estate prices.
“This is purely an administrative and supervisory tool. It does not itself determine prices. In a free market economy, property prices are shaped by entirely different factors,” he said.
According to Oruj, Azerbaijan’s real estate market, like other markets, is influenced by broader economic processes, macroeconomic indicators and general market mechanisms. Administrative measures are not among the factors that directly set prices.
For the mechanism to be fully introduced in Azerbaijan, relevant legislative amendments would first be required. Discussions on the issue have already been held with the Ministry of Justice, he said.
AZE.US