BAKU, July 17, 2025 — Baku’s real estate sector is experiencing a sharp revival, driven by a notable expansion in secondary market listings and rising prices across the board. According to a new report by the Azerbaijan Appraisers Chamber, the number of apartments for sale in the capital increased by 17% from April 2024 to April 2025 — the sharpest annual growth in over a decade.
By December 2024, the total inventory on Baku’s secondary market exceeded 7,000 listings. This surge reflects deeper shifts in both housing policy and economic dynamics, with developers ramping up supply and buyers re-entering the market amid expectations of long-term price appreciation.
Secondary Market Matures, Old Stock Faces Headwinds
The report highlights structural changes within the secondary market. Despite limitations on mortgage eligibility for properties built before 1970, older buildings now comprise a larger share of listings. Meanwhile, newly completed units from private developers are seeing consistent demand, buoyed by better planning, infrastructure, and access to financing.
Monthly data suggests the market stabilized in April 2025 following a frenetic first quarter. However, on a year-over-year basis, the 17% rise in listings — particularly sharp in February — signals sustained investor and end-user interest.
Price Growth Led by New Developments
Average apartment prices also rose steeply over the past year. In April 2025, new-builds were selling at an average of 2,300–2,400 AZN per square meter, up from 2,000 AZN a year earlier — a 15–17% increase. Older units fetched around 2,000–2,050 AZN per square meter, a 10–12% gain over the same period.
Price growth has remained steady month to month. In February 2025 alone, prices for new developments rose 1.5%, while older properties posted a 1.1% increase. Figures from the State Statistics Committee confirm a 14.4% rise in average housing prices during Q1 2025 compared to Q1 2024 — further evidence that growth is not merely a result of shifting property characteristics.
Value Gap Widens Between Old and New Stock
The spread between old and new apartments has widened. As of early 2025, the average price per square meter in new developments stood at 2,167 AZN, compared to 1,800–1,900 AZN in older buildings.
“This price gap is largely driven by two factors: buyer preference for modern amenities and structural mortgage restrictions on legacy housing,” the report notes.
As a result, price growth in new properties has outpaced that of older stock — with annual gains of 14–15% for new apartments versus 10–11% for older ones.
Typical Apartment Now Tops 115,000 USD
The average apartment on Baku’s secondary market remains between 85–100 m², with 2–3 room units dominating listings. Based on current rates, a standard 90 m² apartment now costs 180,000–200,000 AZN — roughly $110,000 to $120,000.
For comparison, in 2013, the average apartment cost just over $113,000, suggesting that despite the manat’s devaluation over the years, dollar-based pricing has held remarkably stable — while manat-denominated prices have soared.
Outlook: Upward Pressure Likely to Continue
April 2025 closed with a 1% monthly price increase, capping a 12-month period of double-digit gains. As demand for new developments persists and mortgage access remains restricted for older units, analysts expect the two-tiered market dynamic to continue driving both segmentation and price growth in the coming quarters.
