The latest situation in the real estate market after the floods: Will prices drop? — CLARIFICATION

The recent flooding incidents observed in Azerbaijan have raised certain questions in the real estate market. Particularly, how house prices will change in the flooded areas and what should be considered when purchasing property in these areas are among the main topics of public interest.

Regarding the issue, Vugar Oruj, Chairman of the Azerbaijan Appraisers Society, who gave a statement to Oxu24.com, explained the current realities of the market and the "red lines" for buyers.

According to Vugar Oruj, there is currently a sharp decrease in applications for house sales and purchases in areas affected by flooding:

"Currently, applications to those areas have stopped. This will result in either stabilization or a slight decrease in prices in the aforementioned areas after some time. However, this process will not affect the entire real estate market. Our market is dynamic, and prices are regulated not by natural phenomena, but by investment attractiveness, micro and macroeconomic factors."

The expert noted that, similar to the earthquake in Turkey, the impact of natural disasters on the overall market trend is temporary.

Will buyers still be forced to turn to those areas?

Interestingly, despite the risks, a certain segment of buyers may still show interest in these areas. V. Oruj attributes this to financial capabilities:

"Individuals who cannot afford to buy homes in high-rise buildings or high-quality private residential areas will still be forced to turn to those areas due to the cheap price factor. However, this can only happen after the infrastructure is restored."

Vugar Oruj has issued vital warnings for those wishing to buy homes in flood-risk areas. According to him, the following situations should be considered "red lines":

* Lack of infrastructure: If there is no drainage, sewage, and collector system in the area, repeated flooding is inevitable.

* Houses without title deeds (Kupça): Buying undocumented houses is one of the biggest risks. This means both legal problems and the absence of state guarantees.

* Uninsured properties: Houses without insurance are completely defenseless against disaster.

* Excessively low price: A cheap house may indicate serious hidden problems (e.g., groundwater levels).

* Technical defects: Houses without a plinth (height), starting directly from the ground, and structures without waterproofing are the properties most damaged during flooding.


Finally, the expert stated that buying houses in areas where problems occur with every small rain can lead to severe consequences for citizens, both financially and morally.