Why do foreign investors choose Azerbaijan?

Azerbaijan is confidently strengthening its position on the international real estate scene.

The country offers favorable conditions for investment, thanks to a combination of growing demand, stable economy, convenient purchase tools, and high-yield properties.

Main advantages of the Azerbaijani real estate market:

Loyal legal framework for foreign investors

In Azerbaijan, foreign citizens are allowed to freely purchase real estate (with the exception of land plots for individual housing construction, which require a legal entity).

All transactions undergo transparent registration, and the state cadastral system operates efficiently.

There are also no hidden barriers for foreigners: a buyer does not need to have a residence permit or register a legal entity to purchase an apartment or unit.

Simplicity of transaction processing

The real estate purchase procedure in Azerbaijan is simplified to the minimum:

• Registration period of property rights: 5–10 business days.
• The state fee is fixed and depends on the property value (usually up to $200).
• The buyer can complete the deal by power of attorney, without visiting the country personally.

Growing tourism market and rentals

Azerbaijan is confidently developing the segment of tourism real estate.

Baku, as a hub of business and tourist flows, and also coastal resort projects (such as Sea Breeze) experience consistently high rental demand.

The demand for short-term rentals is especially strong during the summer season and international events (Formula 1, football championships, exhibitions).

Rental returns on coastal properties (Sea Breeze, Bilgah, etc.) can reach 8–10% annually.

Young and promising market

The real estate market of Azerbaijan has not yet reached saturation like Turkey or the UAE.

Prices remain competitive, and growth dynamics are stable. Over the past three years, the average price per square meter in Baku has increased by 15–20%, depending on the district, and in coastal projects — even higher.

Example: Sea Breeze has shown a price growth from $2,500 per m² to $4,000 and above over the past two years.

High investment returns

• Rentals: 7–12% annually.
• Resale at construction stage: returns reach 30–60% during the construction period.
• Premium segment (sea, Bilgah, Sea Breeze) shows the most stable profitability.

Flexible purchase conditions

Most developers offer interest-free installment plans for up to 24 months. In large-scale projects, a payment scheme with a minimal down payment (from 30%) and a final payment upon completion is available.

Mortgages for foreign citizens are available in Azerbaijani banks but are used less often — internal developer-based installments are more common.

Development of infrastructure and tourism

The state is actively investing in the infrastructure of Baku and the coastal area:

• Construction of new highways, expansion of the embankment.
• Development of yachting infrastructure, new hotels, restaurants, and SPA complexes.
• Active inflow of international brands, including Sea Breeze projects (restaurants, hotels, clubs).

Stable economy

• GDP growth in 2023 was 4.6%.
• The national currency (manat, AZN) has remained stable since 2016, supported by state reserves.
• The volume of direct investment in the real estate sector is increasing annually.
• Baku consistently ranks among the most attractive cities for business in the South Caucasus region.

Opportunity to obtain residence permit

The purchase of real estate in Azerbaijan worth from 100,000 AZN (around $60,000) allows obtaining a one-year residence permit with subsequent renewal.

Attraction of international brands

Azerbaijan is home to Radisson, Marriott, Hyatt, Hilton, etc.

These brands are also developing partnership projects with premium apartment developers.

Why Azerbaijan is now attractive for investors:

✔ Young market with high growth potential.

✔ Transparent purchase terms for foreigners.

✔ High rental and resale yields.

✔ State support for tourism and infrastructure.

✔ Confident economic stability.