Azerbaijan.US
Housing prices in Azerbaijan may face moderate downward pressure next year, according to real estate agents and market analysts, as the property market shows signs of cooling after a period of rapid growth.
Experts note that in 2025, prices for apartments rose sharply across both the secondary and newly built housing segments. However, current indicators suggest that market dynamics may shift in the coming year, particularly in the high-end residential segment.
Real estate professionals say demand has weakened, especially for larger and more expensive apartments, where transaction activity has slowed significantly. Smaller units and mid-priced housing continue to attract buyers, but even in these segments price growth has largely stalled.
According to market participants, one-room apartments in older buildings – typically around 29 square meters – are currently offered at prices ranging from 110,000 to 120,000 manats. Buyers, however, are increasingly reluctant to accept these levels, forcing sellers to reduce asking prices by several thousand manats in order to close deals.
Analysts expect the lower- and mid-priced housing segments to remain relatively stable, as they account for the bulk of residential demand. Any price adjustments in these categories are likely to be limited, with potential declines estimated at 2,000 to 5,000 manats.
By contrast, the premium housing market is expected to see more noticeable corrections. Demand for large, high-priced apartments has weakened, and experts say this segment is most vulnerable to further price declines.
Real estate expert Elnur Fаrzaliyev says the market has been experiencing a period of stagnation for several months, resulting in price stabilization. He adds that if no new mortgage programs or additional financing mechanisms are introduced in the near term, the market could enter another phase of slowdown accompanied by modest price declines.
Another factor influencing demand is ongoing demolition and redevelopment projects in central Baku. Many residents who receive compensation for demolished properties choose to purchase housing in suburban areas, reducing demand in the city center and contributing to price stabilization there.
Ferzaliyev also points to a decline in foreign investment activity, particularly from buyers from Russia, who were previously active participants in Azerbaijan’s real estate market. The reduced presence of these investors has further softened demand.
Overall, analysts say that unless new stimulus measures are introduced, Azerbaijan’s housing market is likely to transition from rapid growth to a period of gradual adjustment, with the most pronounced effects expected in the higher-priced segments.
