BAKU, Azerbaijan, October 13. Housing prices in
Azerbaijan increased by 8.4% over the past year, while the median
monthly rent offered nationwide stood at 917 manat ($539.41) and
the real estate capitalization period reached 23 years.
According to the Central Bank of Azerbaijan's (CBA) Financial
Stability Report, the capitalization period increased by 2.1 years
compared with the end of last year. This change reflects rising
housing prices alongside a relative decline in rental prices.
The pace of housing price growth has shown signs of moderation.
Compared with the same period last year, prices rose by 12.7% in
the primary housing market and by 8.3% in the secondary market.
While the rate of price growth in the primary market remained
stable over the past year, growth in the secondary market slowed
somewhat, the report noted.
The report also assessed how household incomes affect mortgage
affordability. The affordability index, widely used
internationally, is calculated as the ratio of average monthly
disposable income per capita to the average monthly mortgage
payment.
An index above 100% indicates that disposable income is
sufficient to cover mortgage payments, while a reading below 100%
means that the monthly mortgage payment exceeds disposable
income.
According to the CBA, positive growth in household disposable
income over the past two years has driven a sustained increase in
the affordability index, keeping it above the benchmark level.
This trend indicates that households have maintained their
ability to meet mortgage payments, the report said.
