Azerbaijan’s housing market is heating up again – and this time, it’s not following the usual script.
Typically, the fall and winter months bring a slowdown in real estate activity and modest price corrections. But this year, the market has done the opposite: prices have surged by an estimated 20–25%, and demand continues to grow.
According to KhazarTV, real estate expert Nofel Guliyev says activity is increasing both in the primary housing market and in resale properties, with the sharpest growth observed in apartments with official ownership certificates (cixaris/kupcha) – a key factor for mortgage eligibility.
Guliyev notes that the demolition of old buildings and new urban reconstruction projects in Baku are driving up demand for modern housing.
“As outdated Soviet-era blocks are being replaced by new residential complexes, interest in fresh developments continues to rise,” he said.
At the same time, construction costs have climbed sharply. Most building materials are imported, and their prices have risen in recent months, further inflating apartment values. Developers are also facing new legislative hurdles in obtaining building permits, which has slowed new construction and contributed to the shortage of supply.
The result is a market under pressure: rising costs, limited supply, and active buyer demand – all combining to push prices higher. Mortgage access has become somewhat easier, adding another layer of momentum to the ongoing surge.
Currently, the price per square meter in new developments in central Baku ranges from 2,500 to 5,000 manats, depending on location and project class.
Experts say that no price stabilization is expected before the end of 2025, as reconstruction projects and regulatory bottlenecks continue to shape a seller’s market.
