AZE.US
Apartment prices in newly constructed residential buildings in Baku have reached 2,000-2,500 manats ($1,176-$1,471) per square meter, substantially increasing both the upfront and monthly costs faced by buyers.
The prices are being quoted even in buildings where construction has been completed but the property has not yet been formally commissioned, according to Milli.az.
At 2,000 manats per square meter, a 60-square-meter apartment costs 120,000 manats, or about $70,600. With a 30% down payment, the buyer must provide 36,000 manats, or approximately $21,200, upfront.
At 2,500 manats per square meter, the same apartment rises to 150,000 manats, or about $88,200. The required 30% down payment would reach 45,000 manats, equivalent to roughly $26,500.
Dollar conversions are based on the Central Bank of Azerbaijan’s official rate of 1.70 manats per U.S. dollar, effective Aug. 28. Central Bank of Azerbaijan
Developer Financing Offers Little Relief
Some new-build apartments are reportedly available only through internal financing provided by the developer. Repayment periods typically range from 24 to 36 months, leaving buyers with a large balance to repay over a relatively short period.
For the 60-square-meter examples above, the remaining balance after a 30% down payment would translate into monthly principal payments of approximately 2,333-4,375 manats ($1,372-$2,574), depending on the apartment price and repayment period. Any interest or additional fees would push the payment higher.
Monthly installments for some larger or more expensive units are reportedly reaching 5,000-10,000 manats, or approximately $2,940-$5,880.
Buyers seeking an apartment in a Baku new-build therefore face three major barriers: a high price per square meter, a down payment of tens of thousands of manats and a short repayment schedule under developer financing.
Prices vary depending on location, the developer, project infrastructure, the building’s completion status and demand for apartments.
AZE.US