Residential Real Estate - Azerbaijan

The Residential Real Estate market market in Azerbaijan is projected to reach a value of US$369.20bn in 2024.
This market segment is expected to exhibit an annual growth rate (CAGR 2024-2029) of 7.99%, leading to a market volume of US$542.20bn by 2029.
In terms of global comparison, China is expected to generate the highest value in the Real Estate sector, with an estimated worth of US$112.9tn in 2024.
The residential real estate market in Azerbaijan is experiencing a surge in demand due to the government's investment in infrastructure development.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Azerbaijan is experiencing significant growth and development.

Customer preferences: Customers in Azerbaijan have shown a strong preference for residential properties, particularly apartments and houses. This preference can be attributed to the growing urbanization in the country, with more people moving to cities in search of better job opportunities and improved living standards. Additionally, customers prioritize properties that are located in convenient and accessible areas, with amenities such as schools, hospitals, and shopping centers in close proximity.

Trends in the market: One of the key trends in the residential real estate market in Azerbaijan is the increasing demand for modern and high-quality properties. Customers are willing to pay a premium for properties that offer modern features and amenities, such as smart home technology, energy-efficient appliances, and recreational facilities. This trend can be attributed to the rising income levels and aspirations of the population, as well as the influence of global real estate trends. Another trend in the market is the growing popularity of gated communities and residential complexes. These developments offer a range of amenities and services, such as security, swimming pools, gyms, and landscaped gardens. Customers are attracted to the convenience and lifestyle benefits that these communities provide, as well as the sense of community and social interaction.

Local special circumstances: Azerbaijan's strategic location as a gateway between Europe and Asia has contributed to its growing real estate market. The country's booming oil and gas industry has attracted foreign investors and expatriates, leading to a demand for high-quality residential properties. Additionally, the government has implemented policies to encourage foreign investment in the real estate sector, such as offering tax incentives and simplified procedures for property acquisition.

Underlying macroeconomic factors: The growth and development of the residential real estate market in Azerbaijan can be attributed to several underlying macroeconomic factors. The country has experienced strong economic growth in recent years, driven by its oil and gas sector. This has resulted in increased disposable income and improved living standards, leading to a higher demand for residential properties. Furthermore, the government has implemented measures to support the real estate sector, such as providing subsidies for mortgage loans and promoting affordable housing initiatives. These factors have contributed to the overall growth and development of the residential real estate market in Azerbaijan.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate - Azerbaijan

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Living Space

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Contact

Get in touch with us. We are happy to help.

Residential Real Estate - Azerbaijan

In-Scope

Out-Of-Scope

Related markets:

Residential Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts