AZE.US
Apartments in Baku’s Soviet-era “Khrushchevka” buildings are becoming more expensive as buyers increasingly view them as a bet on future demolition and compensation.
The trend is tied to expectations that parts of the capital’s aging housing stock will eventually be replaced under Baku’s urban renewal plans. For many buyers, the calculation is simple: an apartment in an old building may later be exchanged for a larger unit in a new residential complex, along with possible rent payments and other compensation during construction.
That expectation has turned some old apartments into investment assets rather than ordinary housing.
According to real estate specialist Jamal Abushov, demand for Khrushchevka apartments is a natural market reaction, but buyers should be careful. He said investors are looking for buildings that appear more likely to be included in redevelopment plans, especially in areas where replacement housing could be worth much more than the original purchase price.
Abushov said a Khrushchevka apartment bought today for around 190,000 to 200,000 manats could become an asset worth about 300,000 manats if the building is included in a demolition plan.
In central areas, the potential gain after redevelopment can reach 35% to 60%, according to market estimates cited in the report.
But the risk is just as clear. Not every old building will be demolished quickly, and some may remain outside redevelopment plans for years. If prices have already been inflated by speculation, the expected profit can disappear before the project even begins.
Experts warn that buyers should not rely only on rumors that a building is “about to be demolished.” The real condition of the building, its location and its status in urban development plans matter more than talk in the market.
The risk is higher in areas outside central Baku, where prices may rise on expectations but without firm signs of redevelopment. In such cases, buyers could end up holding an overpriced apartment while waiting years for a demolition that may not happen soon.
The growing interest in Khrushchevka apartments shows how Baku’s redevelopment plans are reshaping the housing market. For some owners, an old apartment may become a profitable investment. For others, it may turn into a long and expensive wait.
AZE.US