BAKU, Azerbaijan, October 16. Housing prices in
Azerbaijan rose by 1.4% in the third quarter of 2026 compared with
the previous quarter.
According to the State Statistical Committee, prices rose by
1.3% in the primary housing market and by 1.4% in the secondary
market during the reporting period.
In the third quarter of 2026, Azerbaijan's housing price index
increased by 8.4% year-on-year. Prices in the primary market rose
by 10.4%, while those in the secondary market increased by
8.4%.
From January through September 2026, housing prices rose by 8.4%
compared with the same period last year. During this period, prices
increased by 11.9% in the primary market and by 8.3% in the
secondary market.
Earlier, the Central Bank of Azerbaijan (CBA), in its Financial
Stability Report, said housing prices in the country had increased
by 8.4% over the preceding year. The median advertised monthly rent
nationwide stood at 917 manat ($539.41), while the real estate
capitalization period reached 23 years.
According to the report, the capitalization period increased by
2.1 years compared with the end of the previous year. The report
attributed the change to rising housing prices alongside a relative
decline in rents.
The report also noted a moderation in housing price growth.
Compared with the corresponding period a year earlier,
primary-market prices rose by 12.7%, while secondary-market prices
increased by 8.3%. It said the pace of price growth in the primary
market had remained stable over the preceding year, while growth in
the secondary market had eased somewhat.
The report also assessed the impact of household incomes on
mortgage affordability. The affordability index widely used
internationally is calculated as the ratio of monthly disposable
income per capita to the average monthly mortgage payment.
An index above 100% indicates that disposable income is
sufficient to cover mortgage payments, while a reading below 100%
means that the monthly mortgage payment exceeds disposable income,
the report said.
Meanwhile, according to the Ministry of Finance's Medium-Term
Expenditure Framework for 2027–2030, Azerbaijan's 2027 state budget
is projected to allocate 335.2 million manat (about $197.2 million)
to housing and utilities.
The document states that these expenditures will account for
0.8% of total state budget spending.
