Apartment prices in Azerbaijan have climbed by nearly half over the past five years, according to the Central Bank’s semiannual Financial Stability Report, cited by Khazar TV.
Real estate expert Elnur Farzaliyev told that property prices continue to rise steadily across both the primary and secondary markets. “We’re seeing consistent growth in housing prices – both in newly built and resale apartments,” he said.
Today, a one-bedroom apartment that qualifies for a mortgage in an older building costs between 120,000 and 150,000 manats, while the same type of unit in a new development sells for 140,000 to 250,000 manats.
This means that citizens who have sold land to the state and received compensation often find they can afford only a small one-bedroom flat – usually with a high mortgage burden stretching over 20 years.
Farzaliyev noted that while the overall volume of mortgage lending has increased since 2020, the pace of growth has slowed since 2023. He attributed this slowdown to both demand- and supply-side factors.
“The lending limits set by the Mortgage and Credit Guarantee Fund, as well as the funding structures of commercial banks, restrict the ability to issue additional mortgages using their own resources,” he explained.
The expert added that housing prices continue to climb due to rising construction material costs and strong demand for new residential projects.
