Housing prices in Baku and other major Azerbaijani cities are expected to rise following the introduction of mandatory energy passports for new, renovated, and reconstructed buildings.
The measure, recently approved in its first reading by the Milli Majlis (Parliament), is aimed at boosting energy efficiency and aligning the construction sector with modern environmental standards.
Under the new law, all residential and non-residential buildings will be required to obtain an official energy efficiency certificate – known as an energy passport – before being put on the market. The Cabinet of Ministers will finalize the procedures and enforcement mechanisms in the coming months.
According to Vugar Oruc, chairman of the Azerbaijani Appraisers Society, the new regulation will not only shape market demand but also push up real estate prices.
“Apartments in energy-certified buildings will see both higher prices and stronger demand. These properties consume less energy and have lower utility costs, which makes them more attractive to buyers,” Oruc told Khazar.TV.
Initial market estimates suggest that a flat currently selling for 2,500 manats per square meter could rise to around 2,700 manats once it obtains an energy passport. Experts say the reform could help raise quality standards in construction and encourage developers to adopt sustainable materials and designs.
However, analysts also note that older, energy-inefficient buildings may lose some of their market value as buyers shift toward “green-certified” properties.
