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Sustainable Development of the Mortgage Market in Azerbaijan: Commercial Risks of Housing Construction, Social Vision, and State Influence

Author

Listed:
  • Fuad Ganbarov

    (Institute of Economics of Azerbaijan National Academy of Sciences, Baku AZ1143, Azerbaijan)

  • Klaudia Smoląg

    (Department of Information Management Systems, Czestochowa University of Technology, 42201 Czestochowa, Poland)

  • Rashad Muradov

    (Azerbaijan State University of Economics (UNEC), Baku AZ1001, Azerbaijan)

  • Konul Aghayeva

    (Azerbaijan Architecture and Construction University, Baku AZ1073, Azerbaijan)

  • Rumella Jafarova

    (Azerbaijan Architecture and Construction University, Baku AZ1073, Azerbaijan)

  • Yashar Mammadov

    (Institute of Economics of Azerbaijan National Academy of Sciences, Baku AZ1143, Azerbaijan)

Abstract

The purpose of this study is to formulate a model for sustainable development of the mortgage market in Azerbaijan, taking into account commercial risks of housing construction, the risks of the construction industry, social visions of mortgages, state pressure, and support. The following five key research stages can be distinguished. Namely, identification of commercial risks of housing construction based on a survey; evaluation of the effectiveness of risk diversification strategy; determination of the social vision of a mortgage; substantiating the main directions of state pressure and support for mortgage market development; and creation of a model for sustainable development of the mortgage market in Azerbaijan. At the same time, it is proposed to use a methodological approach to assessing the effectiveness of the model based on the construction of the multivariate linear regression equation. The inclusive model of sustainable development of the mortgage market in Azerbaijan provides for the formation of a favorable institutional environment. Given the selected modules, forecasting the effectiveness of the proposed inclusive model demonstrates its effectiveness in the direction of enhancing mortgage lending based on interest rate regulation taking into account the benefits of green housing construction.

Suggested Citation

  • Fuad Ganbarov & Klaudia Smoląg & Rashad Muradov & Konul Aghayeva & Rumella Jafarova & Yashar Mammadov, 2020. "Sustainable Development of the Mortgage Market in Azerbaijan: Commercial Risks of Housing Construction, Social Vision, and State Influence," Sustainability, MDPI, vol. 12(12), pages 1-18, June.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:12:p:5116-:d:375305
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