Construction materials sellers create artificial price rise on market

Azerbaijan imports construction materials from Russia, Turkey, and Iran. There are also companies producing construction materials in the country. Changes in the construction sector of these countries and the policies of local companies affect the price of building materials in Azerbaijan.

Report has researched the current prices in the construction materials market.

Tural Baghirov, a senior specialist at one of the country's appraisal companies, told Report that there was a sharp rise in the prices of materials imported from Russia: "There is a sharp rise in prices for wood materials, mainly those imported from Russia. This is due to both the current pandemic conditions and the harsher weather in Russia. The cost of wooden materials from Russia has increased by 50% over the past year. The price increase in other materials produced in Azerbaijan is 20-25%. It also affects labor costs. Workers see that materials are expensive and increase their rates. Workers, who used to work for 20 manats ($11.77), now offer their services for 25-30 manats ($14.7-$17.7) a day," he said.

According to Baghirov, local sales representatives have also increased prices: "Sales representatives in the local market are also raising prices to some extent as the weather will cool down shortly. After the total cost of imported materials increases by 5-10%, our sellers also increase the prices.

Large-scale construction is planned on the liberated lands. In this case, sales representatives raise the prices of construction materials, albeit slightly, assuming that demand will increase. Rising energy prices are also leading to increases in transportation costs and the construction market."

"At the end of the year, i.e., in the winter months, there will be some slowdown in the construction market. We expect that during this period, depending on the recession, the prices of construction materials will fall by 5-10%," Baghirov added.

"In August 2021, prices in the construction materials market increased by 0.73%. But the increase was 12.53% compared to the same period last year," real estate market expert Nusrat Ibrahimov told Report.