AZE.US
Real estate prices in Baku continue to rise, with the sharpest increases being recorded for smaller apartments, particularly in older residential buildings.
Property expert Elnur Farzaliyev said demand for apartments in Soviet-era buildings remains high partly because many of these properties could eventually be demolished under urban redevelopment projects.
Residents of demolished buildings are typically provided with rental compensation until construction is completed and later receive fully renovated apartments with a larger total area. According to Farzaliyev, the market value of the replacement property can be almost twice that of the original apartment.
This prospect has increased buyer interest in older buildings, particularly in areas expected to undergo redevelopment.
Prices are also expected to continue rising in newly constructed residential buildings. Farzaliyev said one of the main factors is the declining availability of land suitable for apartment construction in Baku.
The shortage of available plots and the sharp increase in land prices are raising construction costs, which are then reflected in apartment prices.
Current prices in Baku’s new residential buildings vary significantly by location:
- Central Baku: 4,000-7,000 manats per square meter;
- Areas close to the city center: 2,000-4,000 manats;
- Outlying districts: 1,500-2,500 manats.
At the upper end, 7,000 manats per square meter is equivalent to approximately $4,120 at the official exchange rate.
In older residential buildings, prices generally range from 2,500 to 4,000 manats per square meter.
The expert expects housing prices to remain under upward pressure as the supply of construction land declines and demand for both new and older apartments continues.
AZE.US