AZE.US
Azerbaijan’s new housing market may be heading for another price shift, this time because of heating rules rather than location, mortgage demand or construction costs.
Under a Cabinet of Ministers decision, individual heating devices in multi-apartment buildings will be allowed only up to the fifth floor. In newly designed residential buildings, the familiar combi boiler system is expected to be replaced by centralized heating.
That may sound like a technical change. For buyers, however, it touches one of the practical features that has shaped demand in recent years. Individual heating gives apartment owners control: they decide when to turn the system on or off and pay mainly for the gas they actually use.
Valuation expert Vugar Oruj said the new rule will apply to buildings that are still at the design stage. In his view, this could split the new-build market into two groups: existing or already planned buildings where combi systems remain possible, and future projects built around centralized heating.
At the first stage, buyers may show stronger interest in what could now be called “older new buildings” – relatively recent apartment blocks where individual heating is still available. The reason is simple: residents keep more control over their monthly costs and avoid some of the permanent management and technical service expenses linked to shared heating infrastructure.
In future projects, those costs may become part of the wider price of living in a new building. Centralized heating requires operation, maintenance and regular technical control. If the system is modern, properly insulated and well managed, the additional burden may be limited. But if developers use outdated standards or ignore energy efficiency, the cost for residents could be much higher.
Oruj said new buildings with centralized heating may gradually form a separate segment, especially in premium areas. These projects are expected to differ not only by heating systems, but also by fire-safety standards, visual appearance, construction materials and compliance with newer building norms.
According to his estimate, apartments in many new buildings now enter the market at around 3,500 to 4,500 manats per square meter. Projects of the new type could be offered above 5,000 manats per square meter, particularly in premium locations.
Much will depend on how developers implement the new standard. A shared boiler system does not automatically mean sharply higher costs. But if central heating is introduced without proper insulation and modern engineering, the market may react in the opposite way: apartments with individual combi systems could become even more valuable to buyers.
AZE.US