Buying a home remains one of the strongest aspirations for many Azerbaijani families. Yet affordability continues to shape that dream: taking a mortgage is often the only realistic path, but it also means long-term debt – and the question of whether those obligations are truly manageable.
Over the past years, several mechanisms have appeared for prospective buyers: state-backed preferential mortgages, commercial bank loans, internal credit schemes, and the rent-to-own model where tenants can gradually acquire the property they occupy.
Real estate expert Ramil Osmanli says the most viable option on the market is still the government-supported mortgage program.
“The most optimal program for purchasing residential property is the state mortgage scheme. The subsidized option at 4% is particularly attractive. Yes, access can be challenging, but it remains the best path for buying a home,” he noted.
At the same time, analysts say affordable housing is increasingly supported by state policy and market tools.
A rent-to-own structure – paying monthly rent that ultimately counts toward the mortgage – is considered one of the most convenient mechanisms.
Real estate specialist Vugar Oruj explains that this model could succeed because the rental market in Baku is very large.
“If such a program is implemented properly, it would benefit many families. But realistically, it is only feasible in less desirable parts of Baku – mainly the outskirts,” he said.
Another industry voice, Elnur Azadov, argues that even commercial mortgage rates are far from unreasonable.
“Current rates around 12% are already competitive for the market. An 8% mortgage would be extremely attractive. Some banks today even issue loans up to 500,000 manats at fixed rates,” he added.
Experts say these mixed tools – subsidized mortgages, flexible bank loans, and rental-based purchase schemes – will define Azerbaijan’s housing landscape in the coming years, especially as demand continues to grow faster than supply.
