Residential Real Estate Leases - Azerbaijan

The Residential Real Estate Leases market market in Azerbaijan is projected to reach a revenue of US$1.54bn in 2024.
Among the different segments, House Leases dominate the market with a projected market volume of US$1.20bn in the same year.
The market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 8.68%, leading to a market volume of US$2.34bn by 2029.
The demand for residential real estate leases in Azerbaijan is increasing due to the country's growing economy and favorable investment climate.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Azerbaijan is experiencing significant growth and development. Customer preferences in the market are shifting towards renting rather than buying properties. This can be attributed to various factors such as changing demographics, urbanization, and the desire for flexibility and mobility. Young professionals and millennials, in particular, are opting for rental properties as they prioritize convenience and the ability to move to different locations for work or personal reasons. Additionally, the high cost of purchasing a property and the associated financial commitments are deterring many potential buyers, leading them to choose leasing as a more affordable option. Trends in the market indicate a steady increase in demand for rental properties. This is driven by the growing population and urbanization in Azerbaijan, as well as the influx of expatriates and foreign workers. The demand for residential real estate leases is also influenced by the development of infrastructure and the expansion of business districts, which attract individuals seeking housing in close proximity to their workplaces. As a result, there is a growing supply of rental properties to meet this demand, with developers and investors recognizing the potential in the market. Local special circumstances in Azerbaijan contribute to the development of the Residential Real Estate Leases market. The country's strategic location as a transit hub between Europe and Asia, as well as its natural resources, have attracted foreign investments and multinational corporations. This has led to an increase in the number of expatriates and foreign workers who require housing during their stay in Azerbaijan. Additionally, the government has implemented policies to encourage foreign direct investment and economic diversification, which has further stimulated the demand for rental properties. Underlying macroeconomic factors also play a role in the growth of the Residential Real Estate Leases market in Azerbaijan. The country's stable economic growth, supported by its oil and gas industry, has created a favorable environment for real estate investments. The availability of financing options and low interest rates have also contributed to the expansion of the market. Furthermore, the government's efforts to improve the business climate and attract foreign investors have resulted in increased confidence in the real estate sector, leading to further development and growth. In conclusion, the Residential Real Estate Leases market in Azerbaijan is experiencing significant growth and development due to changing customer preferences, increasing demand, local special circumstances, and underlying macroeconomic factors. The market is expected to continue to expand as more individuals opt for rental properties and as the country attracts foreign investments and expatriates.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 considered at a country-specific level.

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

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Residential Real Estate Leases - Azerbaijan

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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