AZE.US
Finding affordable housing in Baku is becoming increasingly difficult. Apartments in older Soviet-era buildings – once considered the budget segment of the market – are now selling at prices that were unthinkable just a few years ago.
Market participants say a one-room apartment of roughly 30 square meters in an older building now starts at around 110,000 manats (approximately $65,000). Two-room units are typically listed at 140,000 manats or more.
Buyers report that listings below the 100,000-manat threshold are rare and tend to disappear quickly. Real estate agents say lower-priced units are often purchased immediately by investors and re-listed at higher prices within days.
Analysts point to structural factors beyond speculative activity. High prices in newly built residential complexes – where three-room apartments can exceed 300,000-400,000 manats – are pushing demand toward older housing stock.
At the same time, urban redevelopment programs are gradually removing aging buildings from the market. As older structures are demolished and replaced with larger, more expensive developments, the supply of small, relatively affordable units continues to decline.
Experts say the upward pressure on prices in Baku’s older housing segment is likely to persist. However, some expect potential price adjustments in the high-end new construction market due to limited purchasing power.
The broader trend suggests a narrowing gap between old and new housing – not because new apartments are becoming cheaper, but because older ones are becoming significantly more expensive.