Housing prices in demolition areas in Baku: what awaits residents?

Large-scale demolition works in several districts of Baku have caused serious concern among citizens.

As reported by BAKU.WS, the compensation amount provided to residents of demolished houses does not allow them to purchase new housing in the same area.

Currently, the average cost per square meter of housing in Baku districts is:

Binagadi district - 2000 AZN per sq.m, Yasamal district - 3300 AZN per sq.m, Narimanov district - 2800 AZN per sq.m, Sabail district - 2300 AZN per sq.m, Nizami district - 2600 AZN per sq.m.

Against the backdrop of rapidly rising housing prices in the capital, the question of whether compensation amounts match market value has become a subject of widespread discussion.

Real estate expert Elnur Farzaliyev told BAKU.WS that property demolition in the capital of Baku is carried out mainly in two forms:

"The first form is the acquisition of apartments from citizens when land is seized for state needs, the second form is the demolition of old dilapidated apartment buildings by construction companies and their replacement with new buildings.

When land is seized for state needs, citizens' property is valued according to the market value of the area, and the citizen is paid an additional compensation of 20 percent of the amount due. Under this rule, serious demolition work has already been carried out in many districts of Baku, and currently demolition work continues as part of the process of land acquisition for state needs.

On the other hand, when old dilapidated apartment buildings and private residential houses are demolished by private construction companies, the total area of citizens' property is measured. Then contracts are concluded between citizens and the construction company. The construction company pays citizens monthly rent and relocation expenses until their homes are demolished and they are provided with fully renovated apartments in new buildings. Then the citizen receives a more spacious and fully renovated apartment in exchange for their old one.

Looking at prices, the value of land plots or apartments in the center of the capital and areas adjacent to the center is measured differently. The location of land plots, the availability of extracts, and other issues have a very large impact on their prices.

However, if you look at buildings, especially apartment buildings, prices in apartment buildings are completely different. Prices vary to a greater extent not depending on the location of the area, but depending on the brands of construction companies. In some areas, the prices offered in apartment buildings differ by up to two times.

In this regard, citizens make choices when buying any real estate and acquire apartments in buildings that fit their budget and are beneficial. Prices in both cheap and expensive buildings almost constantly maintain their value and follow an upward trend.

If we look at demolitions now, during demolitions citizens are paid compensation in accordance with the total market value of their apartments. If the total area of a citizen's apartment is smaller, then the demolishing company pays such citizens more money as compensation so that the citizen can buy any apartment in any district and improve their housing conditions."