Why invest in property in Azerbaijan
The Republic of Azerbaijan is a transcontinental country located in South-Eastern Europe and South-West Asia. Its capital city is Baku , and at the same time is the largest city of Azerbaijan.With a population of approximately ove 10.2 millions at 2022 , about half of the population is economically active . Total labour force reached 5 million I n 2016. As of October 2014, Azerbaijan holds the highest foreign investment per capita among the Commonwealth of Independent States (CIS) countries. Germany, for example, has invested approximately $760 million into the Azerbaijani economy, and approximately 177 German companies operate within Azerbaijan. Since gaining its independence, companies have invested $174 billion into Azerbaijan. Foreign investment accounts for around half of that amount
Azerbaijan led the world as the top reformer in 2007/08, with improvements on seven out of 10 indicators of regulatory reform. Azerbaijan started operating a one-stop shop in January 2008 that halved the time, cost, and number of procedures to start a business. Business registrations increased by 40% in the first 6 months. Also, taxpayers can now file and pay their taxes online. Azerbaijan's extensive reforms moved it far up the ranks, from 97 to 33 in the overall ease of doing business.Azerbaijan s economy has gone from power to power and the country now best growing economy in Caucasus Region with its oil and gas , tourism industry.
Azerbaijan Located on the south-eastern border of Europe serving as the natural bridge between Europe and Asia. Its the most state-of-the-art transport infrastructure in the region with about 19,000 km of hard-surface roads , 6 international airports( Baku operates the largest international airport in the region) , over 2,000 km of operational railroads: The so-called “Iron Silk Way”, Baku-Tbilisi-Kars trunk-railway connecting European and Asian railway systems, is under construction. A new international sea port, located at Alat, 60kms south of Baku, with annual capacity of 10-11.5 million tons of cargo and 50,000 TEU (to be increased up to 21-25 M tons of cargo and 1M TEU).
Investment Climate of Azerbaijan
- Attractive investment incentive schemes ;
- NO business inspections by state authorities and agencies ;
- Party to all major multilateral instruments on protection and promotion of foreign investment ;
- Over 47 bilateral investment treaties and 51 double taxation treaties with foreign countries ;
- Over 450 e-services by state authorities ;
Economic stability in Azerbaijan
In the past 10 years , GDP and foreign trade has doubled in size and strategic currency reserves have increased by 16.3 times in Azerbaijan.
- 58th most competitive economy among 140 countries
- Public safety, good governance, and political stability were cited by the international business community operating in Azerbaijan as the most desirable features of doing business in Azerbaijan.
- Investments worth over 250 billion USD since 1995.
- Azerbaijan is ranked 65th in the World Bank Doing Business Guide (2017)
- In World Bank’s ease of doing business ranking Azerbaijan was ranked 34 out of 190 countries in 2019
SWOT Analysis for Azerbaijan Real Estate
Strenghts
- Azerbaijan is leading investment country in Caucasus Region for GDP growth projections.
- Strong banking and financial regulations.
- NO restrictions on foreign investments
- NO local content requirement
- Sustained domestic demand for real estate
Weaknesses
- Not all construction companies work with foreign investors on mortgages
Opportunities
- The process of rapid urbanization is making opportunities for new housings
- Constantly increasing domestic and foreign demand for property investment
- Azerbaijan has a growing real estate market that is poised for continued growthImmigrants can find success by investing in real estate projects or starting their own businesses related to real estate development
- Growing tourist income and investors have made opportunities for residential property
Threats
- Very strong wind is a common feature in Baku, especially in coastal areas.
- The effects of the Russian-Ukraine war to economy