Azerbaijan.US
While social media has been flooded with claims about rising construction material prices and their potential impact on the housing market, on-the-ground reality tells a different story. Visits to construction supply markets in Baku show stability rather than escalation – and in some cases, even discounts.
Traders say there has been no noticeable surge in prices across key categories. For example, timber that previously sold for around 330 manats per cubic meter is now available for about 310 manats. In finishing and insulation materials, sellers report either unchanged prices or minor fluctuations measured in cents rather than manats.
Roofing materials and sheet products show similar patterns. Depending on manufacturer and specifications, price differences range from 20 to 30 qapiks, with no systemic upward trend. Metal products, including rebar and profiles, also vary by thickness and origin, but sellers stress that current price levels remain broadly stable.
The dominant issue in the market, however, is not pricing but weak demand. Vendors say customer traffic has dropped sharply. Despite hundreds of outlets operating daily, the number of actual buyers remains low, making sales increasingly difficult even at discounted prices.
Market analysts note that periodic price adjustments in construction materials have a limited effect on real estate prices. In multi-apartment residential projects, construction materials typically account for only 15-20% of total building costs. As a result, even a 5-6% increase in material prices would not significantly influence final housing prices.
Temporary supply disruptions do occur, particularly when imports from neighboring countries are affected by geopolitical or logistical issues. However, such disruptions tend to cause short-term delays rather than sustained price increases.
Experts say there is currently no objective basis for alarmist predictions circulating online. For those planning renovations or construction, the present environment may even be favorable, as low demand has pushed sellers to offer competitive pricing.
The consensus among market participants is clear: despite online speculation, the construction materials market is experiencing calm conditions and soft demand, not a price shock.
