AZE.US
Apartment prices in Baku are rising not only in new developments but also in aging residential buildings that could eventually be demolished and replaced.
Elnur Farzaliyev, chairman of the Azerbaijan Realtors Association, said investor interest is increasing because owners of demolished apartments may receive more valuable homes in newly constructed residential complexes.
Under redevelopment arrangements, affected residents are often offered fully renovated apartments with more space than their previous homes. Developers may also cover temporary rent and relocation expenses while construction is underway.
Those obligations increase development costs and ultimately affect the prices of apartments sold in the new buildings. The widespread use of mortgages and installment plans is also influencing price formation across the market.
At the same time, some buyers are purchasing apartments in aging buildings in anticipation of future redevelopment. They expect to receive a higher-value apartment in a new complex and later sell it at a profit.
AZE.US