AZE.US
Homeownership remains a key goal for many citizens in Azerbaijan, but sustained price growth in recent years has made purchasing property increasingly challenging, particularly in Baku and its surrounding districts.
According to comments by Vugar Oruj, Chairman of the Azerbaijan Society of Appraisers (AQC), cited by local media, the real estate market is expected to remain attractive for investors in 2026 despite discussions about potential economic difficulties.
Oruj noted that due to limited alternative investment instruments, real estate continues to hold a priority position for capital allocation.
Among the areas identified as having strong growth potential are the Sabail and Nasimi districts, locations where new metro and tram lines are expected, the Jeyhun Hajibeyli Street area, and neighborhoods surrounding the former “Semashko” hospital site. Zones undergoing demolition and redevelopment are also seen as likely to experience price increases.
Additional growth is anticipated near the intersection of Heydar Aliyev and Ziya Bunyadov avenues, along the Gobu-Hokmeli road, and in coastal areas such as Mardakan and Bilgah. The Nardaran direction, particularly areas around the “Sea Breeze” development project, is also considered an active expansion zone.
In several of these locations, landowners are reportedly receiving compensation as part of redevelopment projects, contributing to rising land values.
According to Oruj’s projections for 2026:
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Prices in older residential buildings may increase by approximately 6.5%;
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New residential developments could rise by around 9.5%;
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Land plots are expected to grow by about 15%;
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Individual houses by roughly 9%;
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Non-residential properties by approximately 11.5%.
While the broader economic outlook remains under discussion, infrastructure expansion and continued urban development are expected to support further upward pressure on property prices in selected parts of the capital.