AZE.US
A luxury apartment advertised in Baku for 1 million manats (about $588,000) may ultimately sell for 850,000–900,000 manats ($500,000–$529,000), as sellers cut prices after months without a buyer, real estate specialists say.
Participants in an ITV report said discounts on expensive homes can reach 100,000–150,000 manats ($58,800–$88,200). That amounts to a reduction of roughly 10%–15% from a 1 million-manat asking price.
The findings were also reported by Vesti Baku.
Listing Prices Do Not Guarantee a Sale
Baku listings now include one-room apartments priced at 200,000 manats ($118,000), larger homes around 500,000 manats ($294,000) and exceptional properties advertised for as much as 5 million manats ($2.94 million).
Market participants cautioned that an advertisement does not prove a property can sell at the posted price. Demand narrows sharply in the upper segment, leaving some homes on the market for months and strengthening buyers’ bargaining position.
Apartments priced at 1 million–1.5 million manats ($588,000–$882,000) are offered near the Elmlar Akademiyasi metro station and in parts of Badamdar, according to the report. They are generally large four- or five-room homes, including units in new buildings close to the metro.
Buyers exist in this range, but transactions are relatively rare. Owners who begin with ambitious asking prices may eventually accept a substantial reduction rather than continue waiting.
Why Prices Remain High
Specialists cited the shrinking supply of land suitable for apartment development and rising land prices as factors pushing up the cost of new construction.
They also pointed to a limited supply of homes with formal ownership extracts that are eligible for mortgage financing. A significant share of such properties has already been sold through various credit programs over the past five years, according to the report.
The gap between asking and transaction prices is especially important in luxury housing: headline listings show what owners hope to receive, while completed deals reflect the much smaller pool of buyers able and willing to pay.