AZE.US
Apartments in Baku are increasingly being purchased not as homes, but as investments, adding further pressure to an already expensive housing market.
Real estate and construction expert Elnur Azadov said sustained price growth over the past five years has encouraged more buyers to view residential property as a way to preserve and increase their capital.
According to him, many buyers now purchase apartments with the intention of reselling them at a higher price or generating rental income rather than living in them.
Citing data from Azerbaijan’s Mortgage and Credit Guarantee Fund, Azadov said apartment prices in Baku have increased by approximately 12 to 17 percent annually in recent years.
“People see that housing prices are rising every year and that real estate has become a profitable long-term investment,” he told Demokrat.az.
The expert also noted a visible increase in the number of people using mortgage loans for investment purposes.
Some borrowers purchase apartments through mortgage programs and later rent them out or sell them after prices rise. This practice increases overall demand and forces ordinary homebuyers to compete with investors.
Real estate is traditionally considered a relatively safe way to protect savings from inflation. However, growing investment demand can also overheat the market, push prices higher and make housing even less affordable for young families and middle-income residents.
The trend means that demand in Baku is increasingly driven not only by people seeking a place to live, but also by buyers treating apartments as financial assets.
AZE.US