Mass demolition and redevelopment works across Baku in recent months have triggered a sharp spike in rental prices, leaving many residents scrambling for affordable housing.
Apartments that once rented for 500–600 manats are now listed at 700–800 manats – and in some cases, even higher.
According to real estate expert Elshad Aliyev, the capital’s rental market has entered a crisis phase.
“Prices are climbing day by day. It’s nearly impossible to find a decent apartment at a reasonable cost. Demand far exceeds supply,” Aliyev told Bizim.Media.
“One of the main reasons for this surge is the ongoing demolition in the city. People forced to vacate their homes are urgently looking for new apartments, which has created artificial demand and driven prices up.”
An overheated market
The expert emphasized that Baku’s housing market is currently “overheated,” with landlords taking advantage of the shortage.
The situation is especially difficult for students and young professionals, many of whom face rising rent costs ahead of the new academic season.
Aliyev suggested that a long-term solution could involve decentralizing parts of the city’s educational and business infrastructure.
“If universities and major companies move outside Baku, the student population in the capital would decrease – easing pressure on the rental market,” he explained. “It’s a gradual process, but it’s one of the few realistic ways to stabilize demand.”
No relief in sight
Despite hopes for stabilization, Aliyev does not expect prices to fall in the coming months.
“On the contrary, with autumn’s arrival and the return of students, we might see another surge,” he warned.
Analysts say the current situation reflects deeper structural challenges – from limited urban planning to delayed housing reforms – making Baku’s rental sector one of the most volatile in the region.
