Shorouk Express 
BAKU, Azerbaijan, October 4. Although mortgage
lending has generally grown in recent years, the pace of increase
has slowed in recent periods, the Central Bank of Azerbaijan (CBA)
stated in its semiannual Financial Stability Report, Trend reports.
The report pointed out that although mortgage volumes have been
on the upswing since 2020, the growth rates have hit the brakes
since 2023, influenced by a mix of demand and supply factors.
“High increases in housing prices and rising average interest
rates on new mortgage loans have tempered growth in demand. At the
same time, the limited availability of mortgage loans through the
Mortgage and Credit Guarantee Fund (MCGF) and banks’ financing
structures restrict their ability to issue loans from their own
funds,” the report said.
The report added that in the first half of 2025, the rapid rise
in housing prices and higher average interest rates on new domestic
mortgage loans contributed to a decrease in the housing
affordability index.
The Mortgage and Credit Guarantee Fund of Azerbaijan (MCGF) is a
public fund established in 2017 by the amalgamation of the
Azerbaijan Mortgage Fund and the Credit Guarantee Fund of the
Republic of Azerbaijan. The objective is to enhance living
circumstances, establish an effective financing system for house
construction, attract both domestic and international investors to
mortgage lending, and facilitate access to funding for SMEs. MCGF
provides financial instruments including credit guarantees and
mortgage loans for this purpose.
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