Real estate in Azerbaijan is becoming more expensive: demand is focused on new buildings

The real estate market in Azerbaijan in June shows stability and revival.

As expert Agil Tagiyev told BAKU.WS, buyer activity has increased due to the arrival of the summer season and the expansion of mortgage programs. The main interest is focused on new buildings, especially apartments with renovations and the possibility of obtaining a mortgage.

In the secondary housing segment, according to the specialist, prices have stabilized, and in some areas have even slightly decreased. In the central part of Baku, a square meter costs from 2500 to 3200 manats, in the outskirts - 1100-1600 manats.

The rental market has also become more active. Due to summer vacations and the outflow of students, the number of vacant apartments has increased, which has caused a seasonal decrease in prices. One and two-room apartments are in the highest demand. Renting a "two-room" apartment in the center of the capital costs 500-900 manats.

Agil Tagiyev noted that compared to May-June of last year, the market shows higher activity and price growth. In 2024, housing prices increased by an average of 9.7% (new buildings - by 7.8%, secondary housing - by 9.8%). In the first quarter of 2025, growth reached 14.4%, especially in the new buildings segment. In the second quarter of 2024, budget new buildings grew by 11.3%, and in 2025 - even more, sometimes even surpassing the cost of apartments in old buildings.

According to the expert, demand is focused on ready-made housing that meets mortgage conditions. The importance of mortgage financing and online real estate sales platforms has significantly increased.

The rental market is also not standing still. In 2024, prices increased by 10-12%, and in 2025 - already by 13-15%. For example, the rent for a two-room apartment in the center of Baku increased from 700 to 800-900 manats.

Tagiyev added that despite the continuing rise in prices, housing affordability is decreasing due to the lag in population income. Demand for new buildings remains high, but the imbalance between supply and demand is still noticeable. Government measures for digitalization and increasing market transparency should improve the situation in the future.