Mass demolition of old houses begins in Baku - what does this mean for the real estate market?

Large-scale demolition of old, dilapidated residential and non-residential buildings is planned in some areas of Baku. The work is being carried out as part of the master plan for updating the capital and improving territories.

As the chairman of the Society of Appraisers of Azerbaijan, Vugar Oruj, said, buildings with expired service life that have no historical value and are in poor condition will be demolished. The priority is to preserve the architectural appearance of the city and increase green areas.

At the first stage, it is planned to demolish about 300 buildings. A tender has already been announced, and appraisal companies are working to determine compensation. Residents are being offered apartments in new buildings, and active negotiations are underway.

According to Oruj, such changes will affect the real estate market: price increases are expected in areas with improved infrastructure and transport accessibility. In other zones, stabilization is possible.

The expert also noted that global inflation is affecting the local market as well. However, in the long term, increasing the number of new apartments through construction will help balance supply and demand.

Real estate expert Orkhan Rustamov shares a similar opinion. He believes that the construction of modern houses with improved conditions increases buyer interest and pushes prices up. This is especially true for the central districts of the capital, where demand remains high.