AZE.US
Prices for apartments in older residential buildings across Baku are steadily rising, narrowing the gap with new construction projects in the city.
Previously considered a more affordable segment of the housing market, apartments in Soviet-era and other older buildings are now approaching the price levels of newer developments in several districts of the Azerbaijani capital.
According to Vugar Oruj, chairman of the Azerbaijan Society of Appraisers, growing demand is the main factor behind the price increase.
One reason is the expectation among buyers that older buildings located in central districts may eventually be demolished as part of urban redevelopment projects. In such cases, owners often receive compensation or replacement housing, which makes these properties attractive investments.
Another factor is location. Many older residential buildings are situated in areas with well-developed infrastructure, close to metro stations, schools, parks and commercial centers.
The most noticeable price increases have been recorded in Baku’s central and semi-central districts, including Sabail, Nasimi, Yasamal, Narimanov and Khatai.
Experts say that over the past three months apartment prices have increased by about 2.5-3% in older buildings, while prices in new residential complexes have risen slightly faster, by around 3-3.5%.
However, the gap between the two segments is gradually shrinking. While the difference in price per square meter previously reached 1,200-1,300 manats, it has now narrowed to roughly 500 manats, depending on the location and condition of the property.
Analysts say interest in older housing may remain strong until large-scale demolition and redevelopment projects outlined in Baku’s master plan are implemented. Once these programs move forward, demand could shift back toward newly built residential complexes.