RIGA TECHNICAL

UNIVERSITY
TOPIC : CONSTRUCTION INDUSTRIES IN AZERBAIJAN

PREPARED BY : ADITYA SHISHODIA

WHAT IS REAL ESTATE?
 Real estate is "property consisting of land and the buildings
on it, along with its natural resources such as crops, minerals
or water; immovable property of this nature.
 6 STEPS TO AN EFFECTIVE CONSTRUCTION
MARKETING PLAN

Determine your objective.

Perform a SWOT analysis ( Strengths, Weakness, Opportunities
and threats).
Analyze the current market.
Develope a strategy and list tactics to your construction
market.
Create a marketing budget for your construction business.
Monitor the results.
SWOT AND PESTAL ANALYSIS ABOUT
AZERBAIJAN
 SWOT ANALYSIS
 STRENGTHS
The real estate brokerage community in Azerbaijan is in its'
beginning stages. Like many transition economies, there are any
number of practitioners that come in and out of the market
depending on what transactions they might be able to do in a given
month. As a consequence, while there are substantial numbers who
have “dabbled” in real estate, it appears the serious companies are
between 30 and 50 in number
 WEAKNESSES
 With its economy so reliant on hydrocarbon exports, it’s no surprise that
Azerbaijan has been shaken by falling oil prices and the fallout of Western
sanctions against Russia. The central bank’s decision to depreciate the national
currency, manat, by roughly 33 per cent against a basket of hard currencies
earlier this year has also been met with concern in the real estate market.

 “Low liquidity played a role. Also, flow of capital in the real estate market has
dropped. This was due to the fact that many banks have restricted the allocation
of loans in manat, which led to a shortage of funds.”
 OPPORTUNITIES
 This is also one of the factors which pushes the construction
companies to build more housing complexes and
increase prices for appartments in them. High rates of prices
for property in Sabail, that is the city center, and in some
parts of Yasamal district, which have all necessary
infrastructure, are understandable.
 With so many businesses popping up, paired with the
diverse community in this area, there’s a significant
chance for investment and trade growth
 THREATS
Home sales jumped highly this year as stabilized interest rates
spurred a surge in mortgage loans. The number of homes sold
jumped 25 percent to 95,645 in October, with mortgage sales
rising 31 percent, according to data published by the state
statistics office in Ankara today. Foreigners purchased 806
facilities in Turkey in October – 612 of them in the province of
Antalya.
PESTAL ANALYSIS
 Political Factor

The government heavily subsidizes machinery and other agricultural

inputs, targeting hazelnuts, rice, citrus fruits, tea, tobacco, and
cotton. Azerbaijan has also launched a series of projects to develop
north-south and east-west trade and transit corridors to turn the
Port of Alat and the adjacent Free Trade Zone (FTZ) into regional
logistics hubs. To promote tourism, the government has waived visa
requirements for several countries and simplified the application
process, enabling U.S. citizens to apply for and receive an e-visa online
within three hours by paying an expedite fee. The government has also
created several high tech parks as part of its efforts to bolster the ICT
sector.
 ECONOMIC FACTOR

 Prices in the primary housing market in December increased

by 13.9 percent to 1,337 manats per one square meter,
prices on the secondary housing market increased by an
average of 1.8 percent to 1,685 manats.
 SOCIAL FACTOR
 The work in this field began in 2016. The State Agency for
Housing Construction was established in April, and in
December 2016, the ceremony for laying foundation was
held for the first 9-storey building and school that are being
built in the Yasamal residential complex, which is the
Agency’s first project.
 Moreover, in late December 2017, the ceremony for laying
foundation was held for the first 7-storey building that will
be built in the Hovsan residential complex, which is the
Agency’s second project.
 TECHNOLOGICAL FACTOR
 A firm should not only do technological analysis of the
industry but also the speed at which technology disrupts that
industry. Slow speed will give more time while fast speed of
technological disruption may give a firm little time to cope
and be profitable. Technology analysis involves understanding
the following impacts -

 Recent technological developments by Australia competitors

 Technology's impact on product offering
 Impact on cost structure in Real Estate industry
 Impact on value chain structure in Real Estate sector
 Rate of technological diffusion
 LEGAL FACTOR
 This factor takes note of all legal aspects like quotas,
resources, exports, imports, employment, etc. Legal factors
have both sides external as well as internal

 Anti-trust law in Real Estate industry and overall in the

country.
 Discrimination law
 Copyright, patents / Intellectual property law
 Consumer protection and e-commerce
 Employment law
 Health and safety law
 Data Protection
 WHY INVEST IN AZERBAIJAN?
 Oil and gas sector is the biggest share of the
foreign investment. The country aims to attract the
investors to diverse sectors such as agriculture,
transportation, tourism and information/communication
technology. Azerbaijan is part of the customs union
between Russia, Kazakhstan and Belarus.
THANK YOU 