Experts made a worrying forecast for apartments in Baku

In 2024, residential real estate prices in Azerbaijan increased by 10% compared to the previous year, according to official statistics. The highest price increase was recorded in the new construction market - 11.3%, while the cost of secondary housing increased by 9.8%.

Will the growth continue in 2025? According to real estate expert Ramil Gasymzade, the increase in land value and active mortgage lending will lead to further price increases for both new buildings and secondary housing. The average price per square meter in new buildings is expected to exceed 2,500 manats.

Another specialist, Elnur Azadov, points to the influence of the Baku Master Plan approved in 2024. He notes that the number of construction permits for new projects has decreased, which may limit market supply. "If developers don't compete, prices will continue to rise," he believes, adding that a revival of the construction sector is possible in the second half of 2025.

Economist Vugar Oruj also predicts apartment price increases, explaining it not only by supply and demand balance but also by macroeconomic factors. Rising construction material costs, inflation, and demolition of old buildings will, in his opinion, become additional drivers of housing price growth.

More details in the Baku TV report.