BAKU — September 4, 2025.
A surge of students into the capital has pushed rental inquiries sharply higher and driven up apartment prices, with average rates at least 15% above last year, real-estate analyst Ramil Osmanli told Unikal. Landlords are also reacting psychologically to the rush, he said: “Seeing elevated demand, many owners feel compelled to raise asking prices.”
The jump is steepest in central districts. One-bedrooms in the city center are now listing around 1,000 manats, Osmanli noted; a 15% rise at that level adds 150 manats—a heavy lift for many tenants.
Two structural forces are squeezing supply. First, the rapid retirement of old housing stock: demolition of low-rise blocks in and around the center has erased a swath of relatively affordable options once shared by 2–4 renters, replacing them with new builds at fundamentally higher price points. Second, renovation programs temporarily swell demand: when neighborhoods are cleared, former residents receive rent compensation and enter the market for interim housing, intensifying competition for listings.
Returns are diverging as prices climb.
“Properties at 100,000 versus 200,000 manats won’t deliver the same yield,” Osmanli said, arguing that investor calculus itself reinforces upward pressure on rents. With limited supply and layered demand—from students to displaced residents—the market, he added, is primed for further strain unless new mid-market stock comes online.
