Baku’s real estate market continued its steady climb in October, posting price increases across every major segment and district of the capital.
New data show that the upward trend, visible for months, is now broad-based – from new developments to land plots and commercial property.
Vugar Orudj, head of the Azerbaijan Society of Appraisers, said the trend has become systemic.
“Despite different growth rates in different segments, the overall direction is unmistakably upward,” he noted.
Prices Up in Every Category
Land plots recorded the sharpest monthly increase, rising 3.4%. Commercial property followed with a 2% jump. In the residential sector, new developments saw an average increase of 1.9%, with recently built projects gaining 2.3%, and buildings from the early 2000s rising 1.5%.
Older housing stock posted more modest growth – 0.7%. Prices for private homes rose 1.1%, while properties at the excavation stage climbed 3%.
District-by-District Breakdown
The strongest momentum came from Yasamal District, where new-build prices climbed 3% in just one month.
Next were Narimanov (2.7%) and Nasimi (2.5%), followed by Nizami (2.3%), Khatai (2.1%) and Sabail (2%).
More moderate increases were recorded in Sabunchu (1.8%), Binagadi (1.7%), Surakhani (1.5%), Pirallahi (1.2%), and Khazar (1.1%).
The slowest growth was in Garadagh, where prices rose 0.9%.
‘No Basis to Expect a Decline’
Orudj dismissed speculation that prices might ease in the coming months.
“There are simply no economic grounds for a decline,” he said. “Azerbaijan’s economy is stable, construction materials are not getting cheaper, the manat is holding firm, and real estate remains one of the most reliable investment tools. Under these conditions, expecting a price drop is illogical.”
What’s Driving the Surge
Several factors continue to put upward pressure on prices:
Urban redevelopment – demolition of outdated buildings, expansion of parks, and new public spaces are boosting the attractiveness of central districts.
Rising demand for rentals – many entrepreneurs now view leasing property as a stable business model, tightening supply.
Higher construction costs – global increases in raw material prices and stricter building regulations in Azerbaijan are pushing up project costs and final sale prices.
A ‘Safe Haven’ for Investors
According to Orudj, investment risks in Baku’s property sector remain minimal. He described the market as a “safe harbor,” especially after the pandemic made alternative investment instruments more volatile.
Even potential economic shifts expected in 2026, he said, are unlikely to disrupt the sector. Large-scale reconstruction in Karabakh and ambitious urban development plans in Baku provide a durable foundation for stability.
Outlook: Further Growth Ahead
Orudj concludes that a price correction is not on the horizon. Instead, all indicators point to continued growth – although the pace may differ depending on segment and location.
In May, Azerbaijan’s Cabinet of Ministers approved amendments to the rules governing phased state oversight in the construction sector, a move expected to further shape the market’s long-term trajectory.
