By AZE.US
Baku’s rental market is facing more than its usual back-to-school surge. Affordable apartments are being removed from circulation by demolition and redevelopment projects, while displaced families can occupy rental homes for at least 2.5 to three years.
As the new academic year approaches, rents in Baku have increased by approximately 20% compared with last year, according to market participants. At the same time, the supply of apartments affordable to students and lower-income families has continued to shrink.
Real estate expert Anar Nasirov told Demokrat.az that the current situation reflects a combination of seasonal demand and longer-term structural changes in the capital’s housing market.
Redevelopment Creates Years of Additional Demand
Since 2019, Baku has expanded projects involving the demolition of aging and unsafe residential buildings. Construction companies temporarily relocate affected residents to rented apartments and cover their housing costs until replacement buildings are completed.
Building a new residential complex typically takes at least 2.5 to three years. During that period, apartments rented for displaced families remain unavailable to the wider market.
If 50 families are relocated from a single neighborhood, approximately 50 rental units can effectively disappear from the open market for several years, Nasirov said.
At the same time, demolition is reducing the supply of older apartments that traditionally formed the most affordable part of Baku’s rental market. New homes eventually built on the same land return to the market at substantially higher prices.
Current Rental Prices in Baku
A Vesti Baku review of rental listings found that apartments in older buildings were being offered at the following average monthly rates at the beginning of September:
- One-room apartments: 450–500 manats ($265–$294)
- Two-room apartments: 600–700 manats ($353–$412)
- Three-room apartments: 800–1,000 manats ($471–$588)
Small one-room apartments can still occasionally be found for 400–450 manats ($235–$265). However, these properties are usually in older buildings, have limited space or basic renovations, and disappear from listing platforms quickly.
In mass-market new developments, one-room apartments generally rent for 600–750 manats ($353–$441). Prices near metro stations, universities and central districts typically reach 700–900 manats ($412–$529) or more.
During an August review, a one-room apartment near Neftchilar metro station was listed for 400 manats ($235), while comparable units near Memar Ajami and Ganjlik were offered for 450 manats ($265).
Similar apartments in newer buildings near Azadlig Prospekti, Nariman Narimanov and Inshaatchilar stations were listed for 650–700 manats ($382–$412). Units in some modern residential complexes reached 900 manats ($529) per month.
Two-Room Apartments Range From 400 to 2,500 Manats
The price gap is even wider for two-room apartments.
Individual units in older buildings and outlying neighborhoods can still be found for 400–550 manats ($235–$324), while comparable apartments in newer buildings near metro stations generally cost 800–1,200 manats ($471–$706).
Near the 28 May metro station, two-room apartments in older buildings were listed for approximately 750–850 manats ($441–$500). Prices in newer developments reached 1,200–1,300 manats ($706–$765).
In the Narimanov district, asking rents ranged from 400 manats ($235) in an older building to 1,200 manats ($706) in a modern residential complex.
Premium properties can cost 2,000–2,500 manats ($1,176–$1,471) per month, although such listings do not represent the mass rental market and should be considered separately.
Students Intensify the Shortage
August and September traditionally bring additional pressure as first-year students arrive in Baku and others return from summer breaks in Azerbaijan’s regions.
Nasirov estimated that students account for approximately 90% to 95% of rental inquiries during this period. Demand is concentrated around universities, metro stations and direct bus routes.
The strongest pressure is being reported in the Nasimi, Yasamal, Narimanov, Sabail and Khatai districts. Areas near Elmlar Akademiyasi, Inshaatchilar, Ganjlik, Nariman Narimanov and 28 May stations remain particularly popular.
However, not every advertised apartment is actually available to students. Landlords frequently specify “families only,” “women only” or “female students only,” leaving male students and groups with a significantly smaller selection.
As a result, the true number of apartments available to an individual renter can be much lower than the overall number of listings suggests.
Move-In Costs Can Approach Two Monthly Payments
The advertised monthly rent is not always the renter’s full initial expense.
Real estate agencies commonly charge commissions equal to 20% to 30% of one month’s rent. For an apartment costing 700 manats ($412), the agent’s fee can add another 140–210 manats ($82–$124).
If the landlord also requires a security deposit, initial move-in expenses can approach the equivalent of 1.5 to two monthly payments. Utilities and building maintenance fees are also generally charged separately.
Demand may ease after the September rush, but prices do not necessarily return to their previous levels. In recent years, rents raised before the academic year have frequently remained at the new rate even after the market stabilized.
Baku’s rental shortage therefore cannot be attributed to students alone. The loss of older housing, the long-term placement of displaced residents in rental units and the construction of more expensive replacement buildings are steadily reducing the supply of affordable homes across the capital.
AZE.US