AZE.US
Apartment prices in Baku continue to rise despite a roughly 17% increase in the number of properties listed for sale compared with previous years.
As AZE.US reports, citing local media, the average price per square meter has continued to climb in both newly built and older apartment buildings.
Over the past year, prices in new residential developments rose by 15% to 17%, while apartments in older buildings became 10% to 12% more expensive.
Vugar Oruj, chairman of the Azerbaijan Society of Appraisers, said higher construction costs are directly affecting the housing market.
Construction costs have increased by about 10% this year, while the overall volume of construction has fallen by 7%.
According to Oruj, Azerbaijan needs to build at least 40,000 apartments annually to meet existing demand.
The country currently has approximately 2.5 million residential properties. Experts say this is not enough to keep pace with population growth, the formation of new households and continued demand for housing.
Land Prices Rise by Up to 30%
A shortage of available land has also pushed up prices for plots intended for private homes and summer houses.
The sharpest increases, ranging from 25% to 30%, were recorded in Mardakan, Bilgah, Nardaran and Shuvalan.
Land prices in Pirshaghi, Novkhani and Mashtagha rose by about 10% to 15%.
Across Azerbaijan, land prices increased by an estimated 12% to 15% during the first six months of 2026 compared with the previous year.
During the same period, apartment prices in new buildings rose by nearly 10%, while prices on the secondary market increased by approximately 6% to 6.5%.
Commercial properties and other real estate assets also became more expensive, particularly in areas where land accounts for a significant share of the total property value.
Prices Reach 4,000 Manats per Square Meter
Real estate expert Elnur Azadov said apartment prices in central and well-developed areas of Baku range from 2,200 to 4,000 manats ($1,294 to $2,353) per square meter.
Prices depend largely on location, transportation links, the condition of the building and access to surrounding infrastructure.
In suburban districts and areas farther from the city center, prices start at around 1,200 manats ($706) per square meter.
Experts see little reason to expect a significant decline in housing prices in the near future.
Rising construction material costs, a shrinking supply of available land and strong demand for housing are expected to continue putting upward pressure on the market.
AZE.US