Azerbaijan's real estate market in 2026: growth in the context of a stable economy

In the first quarter of 2026, Azerbaijan’s residential real estate market continues to show steady growth, largely due to the country’s favorable macroeconomic conditions. Strengthened financial stability driven by growth in oil and gas revenues, the development of non-resource sectors, and an active government investment policy create a solid foundation for the market’s continued growth. An additional factor contributing to stability is the national currency, the manat, which maintains a stable position in relation to key global currencies, creating a favorable environment for long-term investments, including in real estate.

In this context, the housing market, particularly in Baku, shows steady positive growth. With high demand from both local and foreign buyers, apartment prices continue to rise: in the new-construction segment, prices increased by an average of 3-5% in January-March, and in the capital’s premium districts, the increase reached 6-10%. The most significant growth is observed in the city’s central locations, as well as in projects with developed infrastructure and high construction standards, including properties on the Caspian Sea coast.

The key drivers of growth in real estate market capitalization remain:

• limited supply of high-quality properties in central Baku;
• active renovation of older residential buildings;
• availability of mortgage programs;
• growing investor interest in the city as a regional financial and tourism hub;
• growing investor interest in one of the largest development projects, Sea Breeze.

The sector receives significant support from:

• the development of transport and logistics infrastructure;
• growth in the construction industry;
• an increase in the inflow of foreign investment;
• the implementation of government urban modernization programs. 

As a result, the real estate market is becoming one of the main beneficiaries of the country’s economic growth.

Under these conditions, real estate in Azerbaijan continues to be viewed by investors as a reliable instrument for preserving and growing capital, as well as an effective way to diversify assets during times of global economic uncertainty.