Baku Holds Steady While Regions Face Shifting Construction Prices

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Baku sees relative stability, while regions face uneven price shifts driven by fuel costs and import duties

Prices for construction materials in Azerbaijan are showing mixed dynamics, with stability largely preserved in Baku while regional markets experience more noticeable fluctuations.

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According to sellers and market participants, the capital’s construction materials market has largely adjusted to competitive pricing standards. A wider choice of suppliers and stronger competition have helped keep prices for key products – including timber, cement, and fittings – relatively stable.

In regional markets, however, the picture is less uniform. In some areas, prices for timber and metal products have declined due to weaker seasonal demand. In others, particularly for finishing materials such as tiles and ceramics, moderate price increases have been recorded.

Sellers in regions such as Sheki and Barda report price drops of 20–30 manats per cubic meter for timber compared to last year. Cement prices currently range between 7.5 and 9 manats per bag, while metal products and rebar have also seen slight reductions in some locations.

At the same time, merchants in western regions like Tovuz note price growth of around 5 percent for certain finishing and hardware materials. Market participants link these increases primarily to rising transportation costs.

Economist Khalid Kerimli explains that recent price differences are largely driven by higher logistics expenses and changes in customs duties. Since January 1, diesel fuel and A-92 gasoline prices have increased, raising both production and transportation costs across the construction sector.

In addition, new import duties have come into force. Customs fees now include 34 manats per 1,000 imported construction bricks, 150 manats per ton of rebar, and 100 manats per ton of metal profiles. These measures have increased the cost base for suppliers, particularly outside the capital.

Experts warn that if energy and logistics costs continue to rise, the pressure on construction material prices may intensify, with regional markets likely to feel the impact more strongly than Baku.

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