Azerbaijan is an economically developed country in the South Caucasus, located on the Caspian Sea. The economy is based on oil production and refining, but the country's authorities are trying to diversify assets to be less dependent on fluctuations in the market price of energy resources. Although GDP growth does not show exorbitant values (4%), it speaks of the country's stability, and this often attracts expats. They, in turn, are looking for opportunities to buy real estate in Azerbaijan, whether for permanent residence or for investment.
Advantages of buying real estate in Azerbaijan
The Azerbaijani market is open to foreigners: Article 14 of the Law "On Real Estate" of 2004 allows them to buy residential and commercial real estate without restrictions. You cannot own land, but you can lease it for 99 years.
Due to its popularity with visitors, there is a high demand for rental housing in Azerbaijan. In Baku, the average rental rate for apartments in the center is 800-1500 manat / month ($ 470 - $ 882). With an apartment costing 100,000 manat ($58,823), the annual rental yield reaches 7–9%.
Real estate prices in Azerbaijan
On average, prices on the local market vary greatly not only by city, but also by city districts. In Baku, it is $1,059–$4,118 per square meter — as we can see, the range is very large. Let's consider the reasons for such discrepancies using the example of capital housing prices in Azerbaijan:
| District |
Price (USD/m²)
|
Features
|
|
Sabail (Icheri Sheher, Primorsky Boulevard)
|
2941–4118 |
Historical center with elite residential complexes and views of the Caspian Sea; high demand — high prices |
|
Narimanovsky
|
2353–3530 |
New buildings like "Baku White City" are close to offices and the city's business center |
| Yasamalsky (central part) |
2000–2941 |
A prestigious area with new complexes designed for people with above-average incom |
|
Surakhansky
|
1059–1294 |
A suburb with poor infrastructure, far removed from the center. There is little new construction, the main housing stock is secondary |
|
Garadagsky
|
1059–1353
|
An industrial zone with limited new housing construction. The basis is the secondary market of residential neighborhoods |
|
Binagadinsky (outskirts)
|
1176–1412 |
A residential area with typical development. There is a metro, but overall the infrastructure is weak |
Real estate prices in Azerbaijan by key cities:
| City/district |
Average price (USD/m²) |
| Baku (suburbs) |
547–1471 |
| Ganja |
412–882
|
| Gabala |
588–1471 |
| Lankaran |
529–1176 |
| Sumgayit |
147–529 |
Where is the best place to buy property for sale in Azerbaijan
The main center of gravity of the real estate market in Azerbaijan is the capital, Baku. In 2024, it accounted for 60% of all real estate transactions in the country. The second largest city is Ganja. The city combines the architecture of different eras: the red-brick Shah Abbas Mosque of 1606, the Chohek Hamam bathhouse and the unique Bottle House made of 48,000 glass bottles. Real estate prices here are 30–50% lower than in Baku.
Gabala, located 225 km from Baku at the foot of the Greater Caucasus, is better known as "Little Switzerland". It is home to the Tufandag ski resort and the Gabaland amusement park. Real estate in Azerbaijan is sold here at prices 50-70% lower than in the central areas of Baku ($588-$1471 per m²).
Features of purchasing real estate for sale in Azerbaijan
Foreigners should take into account that the purchase process includes checking the property through the Unified State Register of Azerbaijan. If the property is clean, then in 1-2 days the parties conclude an agreement through a notary. After that, you need to register the ownership and receive the keys.
Required documents:
- Passport with a notarized translation.
- Extract from the real estate register.
- Consent of the seller's spouse, if required.
