AZE.US
Thousands of citizens applied for mortgage loans after Azerbaijan’s Mortgage and Credit Guarantee Fund opened new lending limits for 2026, triggering a surge in demand for housing.
According to official figures, 9,019 applications were submitted for standard mortgage loans, while 4,369 applications were filed under the preferential mortgage program.
However, only 2,165 applications were accepted within the allocated funding limits, highlighting the strong demand for housing finance.
Real estate experts say the new mortgage limits could help revive activity in the property market, where buyer interest had weakened in recent months.
Until recently, housing prices had remained relatively stable across most of the market. Price increases were mainly observed in suburban areas around Baku, partly due to demolitions in the capital that led many residents receiving compensation to purchase property outside the city center.
Analysts warn that the surge in mortgage applications could now push apartment prices up by around 15-20%, as a growing number of buyers re-enter the market.
Real estate expert Elnur Farzaliyev said that over the past five years more than 60% of apartments with ownership certificates were purchased using loans, many of them issued through the state-backed mortgage program.
Rising property prices have also forced many buyers to shift their focus away from central districts of Baku toward suburban settlements and nearby regions, where housing remains more affordable.
Experts note that in central parts of the capital, buyers often need to pay additional funds beyond the mortgage limit, making suburban housing a more realistic option for many families.
Market observers say demand is likely to remain strong as long as mortgage financing continues to play a key role in housing affordability in Azerbaijan.