AZE.US
Rental prices are continuing to climb in Baku, with the sharpest increases now concentrated in the city’s central districts. The market is being pushed up not only by strong demand and good transport links, but also by demolition and redevelopment projects that are forcing more residents into the rental sector at the same time.
Real estate expert Elnur Azadov says the sharpest rent increases are usually seen in August and September, when students begin arriving in the capital. But he says the current rise is also being driven by other pressures already building in the market.
According to Azadov, rents are rising faster in several parts of Baku where pilot redevelopment projects are underway. He pointed to Uzeyir Hajibeyli Street as one example, where several blocks were demolished and around 200 to 300 residents were temporarily pushed into rented housing. When hundreds of new tenants enter the market at once, prices react almost immediately.
Data for the first quarter show that the upward trend in Baku’s rental market remained intact, with the clearest pressure seen in Sabail, Nasimi, Yasamal and Narimanov districts. These areas continue to attract stronger demand because of their central location, transport access and concentration of business activity.
By March, average rents for apartments in newer residential buildings had climbed to about 1,420 manats in Sabail, around 1,015 manats in Nasimi, roughly 815 manats in Narimanov, and about 710 manats in Yasamal.
Other districts are also seeing rents edge higher, though at a slower pace. That suggests pressure is no longer limited to the city center, even if the steepest increases are still concentrated in Baku’s most in-demand urban zones.
The broader picture is that rents in Baku are rising not only because of seasonal demand, but also because supply is tightening in neighborhoods undergoing demolition and reconstruction. If those projects continue to expand, the pressure on the rental market is likely to remain.