AZE.US
Israeli real estate developer Hagag Group is preparing to enter Azerbaijan with two major residential projects at the Sea Breeze Resort on the Caspian coast near Baku.
Hagag Group informed the Tel Aviv Stock Exchange on Aug. 24 that it had signed memoranda of understanding covering approximately 3,500 apartments with a combined built area of 358,000 square meters.
The proposed development would be carried out with an Azerbaijani partner holding about 20% of the venture, while Hagag Group would control the remaining 80%.
The transaction, however, has not been finalized. The documents signed so far are nonbinding, and the projects remain subject to extensive legal, financial and technical due diligence. Binding agreements may be signed after those reviews are completed, according to Israeli real estate media.
Land Valued at 158 Million Manats
The maximum price of the land for the two projects could reach 158.1 million manats ($93 million). This figure covers the land rather than the full cost of constructing the residential complexes.
The developers would initially pay approximately 28.9 million manats ($17 million). Most of the remaining land payment is expected to come from revenue generated by apartment sales.
The structure allows Hagag Group and its local partner to launch a large development with a comparatively limited initial investment. It also makes the projects dependent on strong sales: slower-than-expected demand could complicate both land payments and construction financing.
The larger project is expected to include approximately 2,475 apartments, while the second would add about 1,000 units. Both are planned for the resort’s first shoreline.
Israeli Buyers Among Target Customers
Hagag Group said apartment prices at Sea Breeze currently start at approximately 255,000 manats ($150,000).
That figure reflects existing offers across the resort and should not be interpreted as a confirmed starting price for apartments in Hagag Group’s future projects. Final prices, floor plans and construction schedules have not been disclosed.
Foreign investors, including Israeli buyers, are expected to be among the main target customers. The developer cited a flight time of about three hours between Tel Aviv and Baku and more than 20 weekly flights operated by three airlines.
Tzachi and Ido Hagag, the group’s co-CEOs and controlling shareholders, described the planned move into Baku as an important part of the company’s growth strategy. They pointed to infrastructure investment, tourism expansion and increasing international interest in Azerbaijan’s real estate market.
The brothers began operating under the Hagag Group brand in 2003. Since late 2010, they have controlled Hagag Group Real Estate Entrepreneurship, a publicly traded company specializing in residential and commercial developments in Israel, particularly in Tel Aviv. The company’s history and ownership are detailed in its corporate profile.
Claims of 60,000 Residents Require Attribution
Developed by Azerbaijani businessman Emin Agalarov, Sea Breeze is being promoted as an integrated resort city combining residential neighborhoods, hotels, restaurants, shopping and business districts, schools, medical facilities and sports infrastructure.
Materials accompanying the Hagag Group announcement state that Sea Breeze stretches along approximately 23 kilometers of coastline.
The developers also claim that around 60,000 people currently live in completed buildings at the resort, compared with 35,000 a year earlier, and that apartment sales increased by 35% during the first five months of 2026.
These figures originate from the project’s developers and have not been independently confirmed through Azerbaijan’s official population or housing statistics. They should therefore be treated as company-provided data rather than verified demographic indicators.
Israel Hayom noted that Hagag Group’s main challenge will be converting Sea Breeze’s rapid expansion into enough apartment sales to support the proposed financing model.
Sea Breeze Expands Its Israeli Connections
Hagag Group is not the first publicly traded Israeli company to become involved with Sea Breeze.
In March 2026, Sea Breeze signed an agreement with Mediterranean Towers Assisted Living to develop a specialized residence for senior citizens. The proposed complex would combine accommodation, medical assistance and recreational facilities.
The agreement was signed during the MIPIM international real estate exhibition in Cannes by Agalarov, Sea Breeze Health Valley CEO Konstantin Grinfeld and Mediterranean Towers Vice President and co-founder Boris Levin.
Mediterranean Towers has more than 30 years of experience developing and managing premium senior residences in Israel. Sea Breeze confirmed that the project would become part of its planned Health Valley medical cluster.
Sea Breeze also expanded its visibility in Israel through football sponsorship. In August 2025, Sea Breeze Resort & Residences became the main sponsor of Maccabi Netanya FC.
According to Israeli sports outlet ONE, the agreement is worth 2.5 million shekels per year – nearly twice the value of an average sponsor contract previously secured by the club.
If binding contracts are eventually signed, Hagag Group’s two projects would represent one of the largest entries by an Israeli residential developer into Azerbaijan. For now, however, the plan remains conditional on due diligence and final agreements.
AZE.US