AZE.US
Rental prices in Baku have surged over the past year, with tenants now paying hundreds of manats more for apartments that were noticeably cheaper just a year ago.
According to market participants, the increase has affected nearly every segment of the rental market. Realtors say a one-room apartment that rented for around 300 manats a year ago is now often listed at about 450 manats. Two-room apartments that were previously available for 350 to 400 manats have also moved higher, while some three-room apartments that used to rent for around 450 to 500 manats are now reaching 600 to 700 manats.
The rise in rents is closely tied to broader price growth in the housing market. Official statistics show that apartment prices in Azerbaijan increased by an average of 12.1% in 2025, and analysts say the rental market has followed the same upward path.
Vugar Oruj, head of the Azerbaijan Appraisers Society, says rent growth is directly proportional to rising real estate prices. In his view, housing remains one of the main investment targets in Azerbaijan, with both households and business owners continuing to channel spare capital into property. That, in turn, adds further pressure to prices.
Oruj says research conducted over the past three months shows rents rising by about 1% each month. Compared with the same period a year earlier, the increase is estimated at roughly 8% to 10%, and he says the trend is likely to continue.
Broader economic pressures are also shaping the market. Inflation, higher ownership costs and continued movement of people into Baku are all pushing demand upward. As more people compete for housing in the capital, landlords have more room to raise prices.
Another factor is the informal nature of much of the rental market. In many cases, apartments in Azerbaijan are still rented out without a formal written contract and instead rely on verbal agreements between landlord and tenant. That lack of transparency creates more room for subjective price-setting and arbitrary increases.
At the same time, rental prices in Azerbaijan are not part of a state-regulated tariff system, meaning the cost of renting is largely determined by landlords and by market demand.
For many residents, the result is simple: renting a home in Baku has become materially less affordable than it was a year ago, and there are few signs that relief is coming soon.