AZE.US
A debate is growing in Baku over how compensation should be calculated for homes demolished under redevelopment plans, as residents of smaller houses say the current system leaves them with too little money to buy replacement property in the same area.
The issue has drawn attention in Yasamal district, on Mirza Fatali Akhundov Street, in the area widely known as Sovetski. Some private houses there have already been demolished, while many others remain in limbo because owners are refusing to accept the terms being offered.
Residents say the main problem is the flat per-square-meter compensation model. According to people living in the area, the offered rate is around 2,700 manats per square meter. Owners of small homes argue that while the formula may look fair on paper, in practice it leaves them unable to purchase another home nearby.
One resident said his house measures about 30 square meters. At the current rate, that would mean compensation of roughly 75,000 manats – an amount residents say is not enough to buy a new home in the same neighborhood.
That has fueled calls for a more flexible approach. MP Vugar Bayramov said compensation paid to citizens should be reviewed and the imbalance corrected. He said a proposal has already been submitted to the government calling for a differentiated model.
Under that approach, smaller homes would receive a higher coefficient, allowing owners of low-area properties to get more per square meter than owners of larger houses. As an example, Bayramov said that if the base compensation rate is set at 2,500 manats per square meter, small homes could receive double that amount – or 5,000 manats per square meter.
Real estate expert Ramil Osmanli also backed the idea in principle, but said any such mechanism would need to be applied carefully. He warned that compensation should not be based on size alone. The condition of the property, the level of renovation, access to utilities, the building’s current state and other factors should also be taken into account to avoid creating a new sense of unfairness.
The discussion comes amid long-running dissatisfaction over compensation in demolition zones across Baku, where residents have often argued that payments fail to reflect the real cost of finding alternative housing.
For now, the idea of differentiated compensation is being received positively by many affected residents. But whether it will be adopted – and under what criteria – remains unclear.