AZE.US
Apartment prices in several regions of Azerbaijan are approaching levels seen in parts of Baku, raising questions about affordability outside the capital.
In cities such as Ganja, Mingachevir, Lankaran and other regional centers, newly built residential buildings are now offering apartments starting from around 1,000 manats per square meter – roughly $590 at current exchange rates. In some cases, prices climb to 2,000 manats per square meter, or approximately $1,180.
This trend may appear surprising given that land in the regions remains significantly cheaper than in Baku. However, real estate experts say the final cost of housing depends on more than just land prices.
One major factor has been regulatory changes introduced in recent years. Previously, construction companies could more easily obtain usage rights over land. Today, under stricter rules, the land designated for construction must be fully owned by the developer or housing cooperative. Purchasing land outright requires substantial capital, and these costs are ultimately reflected in the final price of apartments.
Construction logistics also play a role. Building multi-story residential complexes in regional cities often requires additional infrastructure development, transportation of materials from other areas, and rental of heavy equipment such as cranes. These expenses narrow the price gap between regional projects and developments in the capital.
Another contributing factor has been the steady rise in construction material costs in recent years. Imported materials, currency fluctuations, and higher production expenses have all added pressure to developers’ budgets.
As a result, even though raw land remains cheaper outside Baku, the overall cost structure of modern residential construction has changed. In several regional cities, the price per square meter now competes with certain outer districts of the capital – signaling a structural shift in Azerbaijan’s housing market rather than a temporary spike.