Average prices for non-residential spaces in all districts of Baku have seen a significant increase compared to the same period last year.
This was reported by the chairman of the Society of Appraisers, Vugar Oruj.
According to him, the most notable price increase was observed in the Narimanov district of Baku, where the average cost per square meter of non-residential space rose by an impressive 20%, reaching 5,525 manats. Other areas of the capital also experienced noticeable price hikes, though not as dramatic. The smallest increase was observed in the Pirallahi district, where the average price rose by only 5%, amounting to 1,980 manats per square meter.
“The districts that experienced the highest price increase are Narimanov, Sabail, and Nasimi. Here, non-residential space prices have risen more significantly compared to other districts. The maximum increase we recorded was 20%. When comparing the data from May and June, these areas also outpaced others. In Narimanov, Yasamal, and Sabail, we observed steady growth of 3-4% per month,” noted V. Oruj.
Real estate expert Elnur Azadov attributes the price increase to several key factors, the most significant of which is the sharp shortage of supply against growing demand.
“There is a serious imbalance in the market. Many entrepreneurs are actively searching for commercial properties but face limited supply and inflated prices. The highest demand is observed in the restaurant sector, where rental and sale prices increase by an average of 15-20% annually. Some well-located properties have risen by as much as 20% in a year. It’s important to note that the number of commercial spaces is significantly smaller than residential spaces, creating additional pressure on the market,” explained E. Azadov.
The price increases have significantly impacted rental rates as well. Property owners have raised rental fees, which puts additional pressure on businesses.
“The highest rental prices are recorded in central Baku. In the area near the ‘Nizami’ metro station and on the street of the same name, monthly rent per square meter ranges from 80 to 180 manats. The lowest prices are seen on the outskirts of the city. For example, in the Garadagh district, rent starts from 5-7 manats per square meter,” added the expert.
Thus, prices for non-residential spaces in the capital continue to rise in both the sales and rental segments. Experts predict that this trend will persist in the coming months, given the high demand and limited supply.
