AZE.US
Demand for apartments in older residential buildings has grown sharply in Azerbaijan in recent months, reflecting a shift in buyer behavior on the country’s real estate market.
For years, many buyers preferred newly built apartments. Now, with prices in new buildings continuing to rise, older apartments are again attracting attention as a more affordable option.
Experts say price is the main driver. Apartments in new buildings have become increasingly expensive, pushing many families to consider older housing stock. For some buyers, an older apartment is no longer just a compromise. It is a way to enter the housing market at a lower cost.
There is also an investment angle. Some buyers are looking at older apartment blocks that may eventually be demolished and replaced with new buildings. Under such redevelopment projects, owners are often provided with temporary housing or rent compensation during construction. Once the new building is completed, they may receive a renovated apartment in the replacement property.
Specialists say the market value of such a new apartment can sometimes be significantly higher than the value of the older unit originally purchased. That has made certain older buildings attractive not only to people looking for a place to live, but also to investors hoping to benefit from future redevelopment.
Trust is another factor. Many buyers believe that some older buildings, especially those that have stood for 30, 40 or 50 years, have already proved their durability. Unlike some new high-rise developments, where construction quality may become clear only after residents move in, older buildings have a visible track record.
There are also practical reasons. In many older buildings, the management structure, utility payments and relations among residents are already established. That can make daily life more predictable than in some newly built residential complexes.
But older apartments are not suitable for every buyer. Experts note that some of these properties may be harder to use as collateral for mortgage loans. As a result, buyers who depend on bank financing may still choose newer buildings.
The trend shows a more cautious housing market. Buyers are weighing price, risk and long-term value more carefully, and for many of them, the most attractive apartment is not necessarily the newest one.
AZE.US