AZE.US
Rising housing prices in Baku are changing what buyers look for, with older apartments returning to demand as new buildings become increasingly expensive.
Buyers who once preferred new residential complexes are now paying closer attention to older buildings, largely because of the widening price gap.
Vugar Oruj, chairman of the Azerbaijan Society of Appraisers, said new buildings still have a clear advantage in terms of useful life. Most new residential blocks are expected to remain in proper condition for years, while many older buildings have already reached the end of their designed service life.
But market reality is pushing buyers in another direction.
According to Oruj, high prices in new buildings are forcing many families to consider older apartments that better match their budgets. Some buyers also believe that if an old building is demolished in the future, they may receive more favorable compensation.
That expectation is one reason interest in older housing remains strong.
Older buildings also have another advantage: location. Many of them are in central or well-connected parts of Baku, close to metro stations, schools, markets and public transport.
Experts say prices continue to rise across the market, with monthly increases averaging 1-1.5% in different segments.
Location remains one of the main price drivers. If a square meter in an older building in a certain area costs about 2,500 manats (about $1,470), a nearby new building may be offered from at least 3,500 manats (about $2,060) per square meter.
New buildings still retain important advantages, including modern layouts, underground parking, security systems, newer utilities and larger floor plans.
But for many buyers, the decisive issue is not whether a building is old or new. It is whether the apartment fits their budget, is in the right area and makes everyday life easier.
That is why older apartment blocks, despite concerns over their technical condition, are expected to remain an important part of Baku’s real estate market in the coming years.
AZE.US