Azerbaijan’s housing rental market is currently showing price stability, despite strong demand and a lingering shortage of available apartments, according to Vugar Orudj, chairman of the Azerbaijan Society of Appraisers.
“Every year, after the announcement of university admissions, thousands of students begin actively searching for housing in Baku. At the end of August and beginning of September, the rental market experienced a sharp surge. Rapid price increases, combined with limited supply, caused serious concern,” Orudj told Trend.
Current Price Levels in Baku
One-room apartments: 550–750 manats, with central districts reaching up to 1,000 manats.
Stay Ahead with Azerbaijan.usGet exclusive translations, top stories, and analysis — straight to your inbox.Two-room apartments: 800–900 manats on average.
New vs. old buildings: A 20–25% price gap persists.
Most tenants – particularly students and business professionals – prefer furnished “move-in ready” flats. Larger apartments remain less in demand, with each additional room adding 150–200 manats to the monthly rent. Such units are typically rented by large families, foreign investors, or company executives.
Despite the recent cooling of prices after the September rush, the shortage of affordable one- and two-room units continues to strain the market.
Regional Comparison
In sharp contrast, rents in Baku, Yerevan, and Tbilisi remain broadly comparable and, in many cases, more affordable when adjusted for income:
Baku: Central one-bedroom apartments often cost $300–600/month, depending on building quality, amenities, and location.
Yerevan: Central one-bedrooms typically rent for $400–550/month, with upscale units higher.
Tbilisi: Central one-bedrooms usually start at $350–550/month, varying by district and condition.
While prices in the South Caucasus capitals may look similar on paper, analysts note that affordability depends on wages – and with Baku salaries lagging behind rising housing costs, the strain on renters is particularly acute.
