General Overview of the Country: Azerbaijan

Location and Geography

Azerbaijan is located on the western coast of the Caspian Sea, at the crossroads of Europe and Asia. The country borders Russia, Georgia, Armenia, and Iran, and has maritime boundaries with Kazakhstan and Turkmenistan. Owing to its strategic position, Azerbaijan serves as a vital transport and energy hub between East and West, providing access to key international markets.

Urban Development and Infrastructure

Over the past two decades, Azerbaijan has seen rapid growth in the construction sector. In the capital city, Baku, modern residential and business-class developments are actively being built, along with large-scale standard housing complexes featuring rich on-site infrastructure.

Regional cities such as Ganja, Sumgayit, Lankaran, and Gabala are also expanding, though at a slower pace compared to Baku. Overall, the construction activity level is high in the capital and moderate in the regions, showing a steady upward trend.

Primary and Secondary Real Estate

The Azerbaijani real estate market is dominated by new developments offering modern layouts, energy-efficient technologies, and well-designed courtyards. However, secondary housing remains in demand due to lower prices and established neighborhoods with complete infrastructure.

The price gap between new and secondary properties in Baku can reach 20–35%, depending on the area and housing class.

Weather and Climate

Azerbaijan is known for its diverse climate zones — from subtropical in the south to temperate continental in the central regions.

Baku enjoys mild winters (+5…+10 °C) and hot, dry summers (+28…+35 °C). The mountain areas are cooler, making them popular destinations for winter recreation and skiing.

This favorable climate allows year-round construction and ensures comfortable living conditions throughout the seasons.

Market Seasonality

The real estate market in Azerbaijan shows moderate seasonality.

Spring and autumn are peak periods for buyers and developers.

Summer sees a slight slowdown in urban sales but higher demand in resort areas.

Winter brings stable demand, particularly for rentals and ready-to-move-in apartments.

Overall, the market remains stable, with minor price fluctuations driven by seasonal and economic factors, and an average annual growth of around 15%.

Economic Situation

Azerbaijan’s economy is largely based on the oil and gas sector, though in recent years it has actively diversified — developing tourism, agriculture, logistics, and IT.

The national currency, the Azerbaijani manat (AZN), has maintained a stable exchange rate against the US dollar since 2017, and inflation remains under control.

The investment climate is favorable due to low tax rates, transparent regulation, and strong government support for foreign investors.

According to analysts, Azerbaijan ranks among the most promising countries in the Caucasus for long-term real estate investment.