AZE.US
Internal migration remains the main factor shaping real estate prices in Azerbaijan, while the country’s foreign population is not creating significant pressure on the housing market, according to a local property expert.
As AZE.US reports, Firdovsi Khalilov made the assessment after the State Migration Service said that around 220,000 foreign nationals currently live or stay in Azerbaijan.
Khalilov said the figure may appear substantial at first glance, but it does not necessarily translate into stronger demand for homes or higher rental prices.
“Demographics are one of the main drivers of the real estate market. In many countries, migration flows lead to higher housing and rental prices, but the situation in Azerbaijan is different. The primary factor determining property prices here is internal migration,” he said.
According to the expert, it would be inaccurate to claim that foreign nationals are creating speculative pressure on the market.
The reported total includes not only long-term foreign residents, but also people married to Azerbaijani citizens who have not yet obtained citizenship, temporary visitors, tourists and other categories of foreign nationals.
For that reason, Khalilov said, the group is unlikely to cause a major increase in property prices.
He added that Azerbaijan’s main long-term challenge is not the number of foreigners in the country, but broader demographic change.
Khalilov argued that Azerbaijan should attract more international students and tourists to accelerate growth in real estate, retail and services through non-oil revenues.
“At least 50,000 to 60,000 foreign students should study in Azerbaijan, rather than the current 10,000 to 11,000. Annual tourist arrivals should reach 8 million to 10 million. Only then could the rental and construction sectors enter a more dynamic stage of development supported by foreign capital,” he said.
Under current conditions, Khalilov concluded, the presence of 220,000 foreign nationals does not appear capable of causing a significant increase in housing prices or creating meaningful pressure on Azerbaijan’s domestic real estate market.
AZE.US