Azerbaijan.US
Rising apartment prices in Baku are increasingly sparking public concern, as housing affordability drifts further out of reach for young families and first-time buyers.
In recent remarks circulating on social media, public figure Tural Abbasli warned that the capital’s real estate market is being artificially inflated, driven less by real demand and more by speculative practices and weak oversight.
His comments echo a sentiment that has been quietly spreading among economists, buyers, and renters alike: current prices may not reflect economic reality.
According to Abbasli, developers are selling apartments at prices that far exceed construction costs, often counting balconies, walls, and technical spaces as full residential square meters.
Practices that were once excluded from pricing – such as stairwells or utility areas – are now being monetized, pushing headline prices higher without improving actual living conditions.
The result is a widening gap between purchase prices and rental yields. In many cases, a flat costing over 250,000 manats generates monthly rent of 600–700 manats – a return that would struggle to compete with alternative investments such as bank deposits, precious metals, or other financial instruments.
“This is not sustainable,” Abbasli argued, cautioning buyers against treating residential property as a safe investment. He suggested that if buyers temporarily step back from the market, even for several months, inflated prices could face downward pressure as developers lose easy liquidity.
Beyond individual transactions, housing costs have become a broader inflation driver. High real estate prices feed into rents, living expenses, and household debt, shaping long-term social outcomes. Younger generations increasingly view home ownership not as a goal, but as an unreachable aspiration.
While premium housing exists in every major city, analysts note that the concern lies with standard apartments – units that form the backbone of urban housing supply. Without clear pricing standards and transparent cost structures, critics argue, speculative pricing risks destabilizing the market and transferring long-term risk onto ordinary buyers.
Whether Azerbaijan’s housing market is approaching a correction remains an open question. But voices warning of a potential bubble are becoming harder to ignore, especially as affordability pressures continue to mount.
