Azerbaijan real estate market in 2025
The real estate market of Azerbaijan in 2025 continues to shape new trends driven by growing interest from both local and foreign investors. Brokers who are able to quickly adapt to these trends will have the opportunity to offer their clients more profitable solutions in both residential and commercial sectors.
Moderate price growth
In 2025, experts expect a gradual increase in property prices in Baku and other major cities of Azerbaijan by about 5–7% annually. This is attributed to the recovery of purchasing power, rising incomes, and growing interest from investors from Turkey, Iran, the UAE, Russia, and CIS countries.
Competition among developers is intensifying
In 2025, Azerbaijani developers will have to compete more actively for buyers’ attention. Today’s clients are looking not just for square meters, but also for a comfortable living environment, appealing architecture, and functional solutions.
Rising interest in branded developments
The trend for branded real estate is gradually gaining popularity in Azerbaijan. Developers aim to sign contracts with well-known international brands, especially in the hospitality sector and luxury apartments segment.
Strengthening of the tourism sector
The development of the tourism industry will continue to boost demand for both residential and commercial properties. A further increase in tourist flow by 10–12% is forecasted for 2025. Baku is actively attracting investment in tourism infrastructure.
Rising rental prices
The growing interest in Baku from relocation companies, diplomats, IT specialists, and entrepreneurs will continue to drive rental demand. In 2025, rental prices are expected to increase by an average of 7–10%.
Key takeaways for brokers and investors
1. In 2025, the most promising options will be in the mid-range and business-class segments.
2. Demand will be supported by tourism growth, relocations, and urban infrastructure development.
3. Areas with good transport access and new projects will remain in the spotlight for investors.
4. Interest in branded projects and premium services will continue to rise.
5. Purchase and rental prices will maintain moderate but steady growth.
