Azerbaijan Real Estate Market: Key Developments, Growth Trends, and 2026–2028 Outlook

In 2025–2026, Baku’s real estate market shows moderate growth in property prices while rental rates are increasing faster. Property prices are expected to rise 5–6% in 2026, while rental rates grew nearly 8% by the end of 2025.
 
Key trends and insights for investors:
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Renting: Rental growth outpaces property price increases due to high demand and limited supply. Monthly rental yield is around 0.5% of property value. Renting near workplaces can reduce transportation costs.
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Buying: Investing in quality apartments is attractive for long-term residency and protecting capital against inflation. Market stability in early 2026 allows careful property selection.
 
​Strategy:
​•​ Buying provides long-term stability and secure housing.
​•​ Renting is suitable for short-term plans and flexibility.