Baku’s real estate market continues its sharp climb, with prices in some new residential complexes now reaching 3,500 to 5,000 manats per square meter.
The surge has sparked frustration among residents hoping to purchase homes, as affordability slips further out of reach.
According to Baku.ws, Vugar Oruj, chairman of the Azerbaijan Society of Appraisers, identified four main factors driving the spike in property prices.
“The first reason is the growing investment appeal of real estate, which now outperforms all other instruments for capital investment,” Oruj explained.
He said the second factor is the increase in construction costs due to pricier materials and labor.
The third is the tightening of building standards and regulations, which has further raised development expenses.
The fourth factor, Oruj added, is persistent demand for new housing, especially in central districts of the capital.
Experts note that amid inflationary pressures and limited supply, real estate has become one of the most attractive and stable investment sectors in Azerbaijan.
Developers, meanwhile, say that regulatory requirements and imported material costs continue to push prices higher, making new housing projects more expensive from the ground up.
