Azerbaijan is located at the crossroads of Europe and Asia. The eastern part of the country is on the seashore, while the northern part is in the foothills of the Caucasus Mountains. The construction sector is booming: demand for real estate from a developer in Azerbaijan is growing from both locals and foreigners.
Advantages of buying real estate from builder in Azerbaijan
The primary real estate market in the country is growing by 7-10% annually. Residential complexes in Azerbaijan are mainly built in large cities or on their outskirts, cities close to mountain resorts and the Caspian coast. They are built in accordance with international standards, but include mandatory resistance to earthquakes up to 7 points on the Richter scale. This is due to the fact that the country is located in a seismically active zone at the junction of the Eurasian and Arabian tectonic plates.
Other advantages of new buildings in Azerbaijan:
- Financial accessibility. The average cost of new housing in Baku is 1,500–8,000 manat per m² ($880–$4,700). The upper limit of this amount is typical for the center of Baku, but cheaper options can be found in residential areas: this is far from the center, but financially profitable.
- Investment potential. Rental yields in Baku reach 6–8% per annum. New buildings in areas such as the "White City" show a 10–15% increase in value over 2 years.
- Transparency of transactions. Since 2019, you can buy housing from real estate developers in Azerbaijan through ASAN Xidmət or using the SIMA digital signature. This reduces bureaucratic delays to 7–14 days and increases the transparency of the transaction due to state mediation.
How to choose a new building in Azerbaijan
Choosing a new building in Azerbaijan requires analyzing the developer, the property, and legal aspects. In 2024, there were more than 150 licensed developers operating in the country, but only 20-30 of them had more than five completed projects in their portfolio.
Key criteria for choosing a developer in Azerbaijan:
| Criterion | Recommendations |
| Developer reputation | Check the number of completed projects, completion dates and reviews |
| Location | Choose areas with a developed transport network and social infrastructure |
| Construction stage | Properties at the stage of 70-100% readiness are preferable |
| Legal due diligence | Request a construction permit and a land title certificate |
Real estate prices in Azerbaijan in new buildings
The cost of new housing in Azerbaijan depends on the city, district, class of real estate and stage of construction. In 2024, the market offers more than 12,000 new apartments in Baku and about 3,500 in the regions (according to Property.az). The average area of apartments in new buildings is 60–120 m².
The cost of new housing in Azerbaijan:
| Property type | Average price (AZN per m²) |
Average price (USD per m²) |
| Economy class (1–2 rooms) | 1200–2500 | 705–1470 |
| Business class (2–4 rooms) | 2500–5000 | 1470–2940 |
| Premium class | 5000–10,000+ | 2940–5880 |
Regional differences in the cost of new housing in Azerbaijan:
| City |
Average price per m² (AZN) |
Average price (USD per m²) |
Market share new buildings |
| Baku | 1500–10,000 | 882–5880 | 60% |
| Ganja | 800–2000 | 470–1176 | 30% |
| Sumgayit | 900–2200 | 530–1294 | 25% |
When purchasing a new home, it is usually necessary to make an initial deposit into an Azerbaijani bank account. It is 5–10% of the cost, but the specific amount is negotiated at the stage of drawing up the preliminary agreement.
