Azerbaijan.US
Housing prices in Baku have recorded a noticeable increase in recent months, with average growth estimated at around 10%, according to real estate market participants. The sharpest rise has been observed in central districts of the capital.
Real estate agents point to areas such as Ganjlik and Narimanov, where apartment prices have long remained high, as leading the upward trend. In some cases, however, experts say the price surge reflects artificial inflation, driven more by seller expectations than by genuine market fundamentals.
Apartments that were previously offered in the 210,000-220,000 manat range in Narimanov are now being listed for 250,000 to 345,000 manats in the same residential buildings, market participants say.
Industry representatives stress that the price increase is not directly linked to overall inflation or rising living costs across the country. Even buildings lacking objective reasons for appreciation have seen price hikes.
A contributing factor has been demand from foreign buyers, including clients from the Russian market, for whom price sensitivity is often lower.
According to real estate expert Elnur Farzaliev, the most significant price growth is concentrated in apartments that meet mortgage eligibility requirements. These typically include smaller-sized units with official ownership documentation, making them attractive to buyers relying on mortgage financing.
“These apartments are in particularly high demand because they fit mortgage lending criteria,” Farzaliev said, noting that this has led to increased competition among buyers and pushed prices upward.
By contrast, larger apartments have not experienced substantial price growth over the past five months. Demand for spacious and higher-priced units in both older and newer buildings remains limited, helping to keep prices in that segment relatively stable.
Urban redevelopment projects have also influenced market dynamics. Ongoing demolition and renovation efforts in central areas have displaced residents from older and individual housing, prompting many to relocate to surrounding districts and suburban areas. This shift has fueled demand – and rising prices – in nearby settlements and villages.
Farzaliev cautioned that if buyer shortages persist in the coming period, the market could face a correction, with artificially inflated prices giving way to more realistic lev
