AZE.US
Real estate prices in Baku continued to increase in June, with land plots and private houses posting the strongest gains.
According to market research cited in a local television report, average land prices across the capital rose by 2.4% during the month. Prices for apartments in new residential buildings increased by 1%, while homes in older buildings gained 1.5%. Apartments in projects at an early stage of construction rose by 1.6%.
The pace of growth varied significantly by district and property type.
In Sabail district, land prices increased by 12%, while private houses rose by 10%. New-build apartments gained 8%, and apartments in older buildings increased by 6%.
In Yasamal, land prices rose by 11%, private homes by 10%, new-build apartments by 7%, and older apartments by 6%.
Narimanov recorded a 10% increase in land prices and a 9% rise in private homes. Land prices climbed by 9% in Khatai, 8% in Binagadi and 7% in Sabunchu.
The report also cited Khazar district as recording the largest overall increase, at 13%. Sabunchu, Surakhani, Binagadi and Garadagh were also named among the districts with the fastest price growth.
Experts said central districts continued to show stronger demand for apartments and commercial properties, while land and detached houses were rising more rapidly on the outskirts of Baku.
Large-scale demolition projects are also contributing to the trend. As older homes are removed from central and near-central neighborhoods, the city’s available housing stock is expected to decline, placing additional pressure on prices.
Residents receiving compensation for demolished properties are increasingly looking for private homes in suburban areas. Demand is particularly strong for houses with an official property extract, pushing their market value higher.
Other factors affecting prices include inflation, migration into the capital of Azerbaijan, the purchasing power of the manat, construction material and labor costs, land values, and the balance between supply and demand.
Analysts said that if the trend continues through the end of the year, land plots and apartments in projects at an early stage of construction may remain the most attractive options for investors.
AZE.US