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Illegal Housing in Azerbaijan: Why Obtaining Property Rights Is Becoming Impossible

The issue of illegal construction in Baku is escalating, with experts warning that while some homes can still be legalized, for most, the process is now nearly impossible. The greatest risk of demolition faces structures built in hazardous or restricted areas — and owners of such homes are unlikely to receive any state compensation.

Real estate expert Mülkadar Rustamov explains:

“For houses built before 2007 with municipal documents, chances of legalization are relatively high. But those erected after this period are reviewed individually.”

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Location is the key factor. Homes on oil fields, state-protected zones, military or industrial land — including plots along railway lines or near military facilities — cannot be legalized under any circumstances.

Particularly severe cases are seen in Darnagul and Binagadi districts, where many houses stand in railway safety zones or on illegally seized land. Residents there are often victims of fraudsters selling unauthorized houses with false promises of future legalization.

The state has taken a strict stance: no concessions for properties built without permits or proper land documents. Demolitions have already begun in some parts of Baku and are expected to expand significantly.

This tightening of policy is reinforced by an October 2023 decree banning the installation of electricity, water, and gas meters in undocumented homes — a clear sign of authorities’ determination to curb illegal building. Officially, Baku has over 500,000 undocumented houses, but the real number may be much higher, as some meters serve multiple homes.

Chaotic construction is also straining Baku’s urban infrastructure. Sewerage and utility networks, designed for much lower population density, are overloaded, leading to frequent breakdowns and flooding in autumn and winter.

Rustamov notes a surge in illegal building in the Bina settlement of Khazar district, where fraudsters sell newly built, undocumented houses to unsuspecting buyers. The government is already intervening, and the fate of such properties is “practically sealed.”

For now, owners of legally documented homes built on lawful grounds can feel secure. But for hundreds of thousands of Baku residents in illegal dwellings, the threat of demolition is growing rapidly.

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