Apartments in Baku’s nine-story buildings often cost more than homes in five-story blocks for reasons that go beyond total floor area, according to real estate expert Elnur Farzaliyev.
Farzaliyev said demand for apartments in nine- and ten-story buildings in the city’s older housing stock is supported by more practical layouts and broader access to mortgage financing. Some buyers of five-story apartments, meanwhile, are motivated by the prospect of demolition and receiving a replacement home.
Buyers Pay for More Practical Layouts
Apartments in nine- and ten-story buildings frequently offer more space, larger kitchens, additional balconies and separate bathrooms, Farzaliyev said. Those features can make the properties more attractive to families buying homes for long-term use.
He also linked demand to the age and physical condition of the buildings, saying many nine- and ten-story blocks may have a longer remaining service life than older five-story buildings.
Mortgage Access Expands the Buyer Pool
Another factor is financing. Farzaliyev said apartments in nine- and ten-story buildings are more likely to qualify for mortgage purchases.
That allows sellers to attract both cash buyers and people who rely on bank credit. Some older five-story buildings are in poor technical condition, making mortgage financing more difficult and reducing the number of potential buyers.
The expert cautioned, however, that this does not mean every apartment in a five-story building is ineligible for a mortgage. A bank’s decision depends on the characteristics and documentation of the specific property.
Some Buyers Bet on Demolition
Five-story buildings have a different source of demand in areas where redevelopment is expected. Some investors buy apartments in anticipation that a developer will demolish the building and provide owners with larger, renovated replacement homes.
Farzaliyev said the common expectation is that the developer would also cover temporary rent and moving costs during construction. The television report estimated this period at about three years, but that figure describes a general practice rather than a guaranteed timetable or uniform terms for every project.
Buyers are therefore weighing two different advantages: living conditions and mortgage access in nine-story buildings, and possible redevelopment gains in selected five-story properties. The number of floors alone does not determine an apartment’s value.
Sources: Vesti Baku; television report.