AZE.US
Housing prices in Baku are expected to continue rising as the supply of land available for residential construction shrinks, according to the Azerbaijan Society of Appraisers.
Vugar Oruj, chairman of the organization, said the shortage of vacant land is already increasing the cost of newly built apartments, particularly in Baku and across the Absheron Peninsula.
He noted that land scarcity is not the only factor driving prices higher. Rising construction material costs, higher wages, inflation, urbanization and strong demand for real estate as an investment are also contributing to the trend.
Oruj said the implementation of the Baku 2040 Master Plan could eventually free up additional land for development as aging buildings are demolished and replaced.
New construction regulations may add further pressure to prices. Developers are expected to face additional requirements, including energy performance certificates, while individual combi heating systems may no longer be permitted in new residential buildings.
According to the Azerbaijan Society of Appraisers, prices on the secondary housing market could rise by 6% to 7% in 2026, while newly built apartments may increase by 10% to 12%.
Land prices are forecast to climb by 15% to 20%.
The sharpest increases are expected in Baku’s Narimanov district, along Ziya Bunyadov Avenue, near planned metro stations, as well as in White City and Bayil.
AZE.US