Baku, September 6, 2025
Real estate, gold, or the bank? That was the question posed to residents of Azerbaijan’s capital in a recent Baku TV street survey — and the answers reflect not only personal preference but also wider economic trends in the country.
Most respondents leaned toward real estate, echoing the market reality: demand for housing in Baku remains strong, driving sharp price increases in recent years. Apartments in new developments are often snapped up before completion, seen as both a roof over one’s head and a long-term store of value.
“Property bought at the start of a construction project can deliver returns of 35 to 50 percent within two years,” said economist Rashad Gasanov. He noted that real estate remains the default choice for households looking to preserve and grow savings amid uncertainty.
Yet the property boom also carries risks. Prices have risen so quickly that affordability is under strain, and some analysts warn of overconcentration: when too much household wealth is tied to bricks and mortar, families remain exposed to sudden market corrections or changes in lending conditions.
For those seeking stability rather than speculation, bank deposits remain a trusted alternative. Azerbaijan’s commercial banks currently offer interest rates around 12 percent annually, with deposits up to 100,000 manats insured by the government. “This is a classic passive investment,” Gasanov explained, highlighting that bank savings provide predictability even if they lack the rapid appreciation of real estate.
Gold, meanwhile, has re-emerged as a short-term hedge. Local demand has picked up as global forecasts turn bullish. Analysts at Goldman Sachs recently suggested that if the U.S. Federal Reserve’s independence is undermined, gold could soar toward $5,000 per ounce. December futures are already trading above $3,600, adding momentum to the rally.
In Azerbaijan, state-owned AzerGold offers small retail bars priced at 199 manats per gram, making the metal accessible to individual savers. For many, gold is not only a store of value but also a portable, liquid investment at a time when geopolitical uncertainty remains high.
The choice among these three asset classes reflects broader shifts in Azerbaijani household behavior. Real estate continues to symbolize security and social status, while gold is seen as protection against global shocks. Bank deposits, though less glamorous, represent stability in a still-developing financial system.
Economists stress that diversification — spreading savings across different instruments — may be the wisest course. But in practice, cultural preferences and trust levels shape investment choices as much as pure returns.
For now, Baku’s skyline continues to rise, jewelry shops remain busy, and bank deposit rates stay enticing. The question for savers is not only where the best returns lie, but which form of wealth makes them sleep best at night.
