Azerbaijan.US
A quiet shift is reshaping Baku’s housing market. New residential developments increasingly offer only one- and two-bedroom apartments, while three- and four-bedroom units – once common – are becoming rare or disappearing altogether.
The reason is simple: affordability.
Market participants say demand has moved decisively toward smaller apartments, which require lower down payments and create a lighter monthly mortgage burden. For many buyers – especially young families – larger apartments have become financially out of reach amid rising property prices.
Even when interest in bigger living space exists, price sensitivity dominates decision-making. Real estate agents note that buyers may initially look at larger layouts but ultimately choose smaller units that fit their budget.
According to realtor Telman Huseynov, multi-bedroom apartments face two structural challenges: higher purchase prices and higher ongoing costs. Utilities and maintenance fees for large apartments discourage buyers, particularly in an inflationary environment.
“In many older buildings, large four- or five-bedroom apartments are being divided into smaller units because they sell faster,” he says. “The market today is driven by compact layouts.”
Price comparisons illustrate the issue. A two-bedroom apartment of around 50 square meters, priced at 2,000 manats per square meter, costs roughly 100,000 manats. A three-bedroom apartment of 90 square meters, even at a discounted rate of 1,900 manats per square meter, pushes the total price above 170,000 manats – a gap many households cannot bridge.
Real estate expert Elnur Azadov says the strongest demand today is for one-bedroom and studio apartments. He points to several drivers: income levels, mortgage conditions, rising construction costs, and changes in urban lifestyles that favor smaller, more flexible living spaces.
Developers have adjusted accordingly. Industry estimates suggest that over the past few years, the share of projects dominated by one- and two-bedroom apartments has grown by nearly 80 percent. In some new developments, larger units are not included in the original design at all.
In select cases, developers offer an alternative solution: combining two adjacent apartments to create a larger living space for buyers who can afford it.
Price data from valuation studies shows that three- and four-bedroom apartments remain most affordable in Pirallahi district, where prices start at about 1,411 manats per square meter. The most expensive large apartments are found in central Sabail district, where prices exceed 3,950 manats per square meter.
For now, however, Baku’s new housing reality is clear: smaller apartments are no longer a temporary trend – they have become the market standard.
