Housing Prices in Azerbaijan Rise 1.4% in Q3 2026

In the third quarter of 2026, housing prices in Azerbaijan rose by 1.4 percent compared to the previous quarter, according to the State Statistical Committee of Azerbaijan.

According to the agency, in the reporting period, prices in the primary housing market increased by 1.3 percent, while in the secondary market they rose by 1.4 percent.

In Q3 2026, the housing price index increased by 8.4 percent compared to the same period in 2025. The annual growth in the primary market was 10.4 percent, and in the secondary market, 8.4 percent.

For January-September 2026, housing prices overall grew by 8.4 percent compared to the same period last year. During this period, the primary market showed a growth of 11.9 percent, and the secondary market, 8.3 percent.

Earlier, the Central Bank of Azerbaijan (CBA) in its Financial Stability Report stated that over the past year, housing prices in the country increased by 8.4 percent. The median monthly rent for housing offered on the market nationwide was 917 manats, and the capitalization period for real estate increased to 23 years.

According to the report, compared to the end of last year, the capitalization period for real estate increased by 2.1 years. It is emphasized that this change is explained by a relative decline in rental rates amid rising housing prices.

"There was a certain slowdown in the dynamics of housing price growth. Compared to the corresponding period last year, prices in the primary housing market increased by 12.7 percent, and in the secondary market by 8.3 percent. It is noted that over the past year, price growth rates in the primary market remained stable, while in the secondary market growth somewhat slowed."

The report also assessed the impact of population incomes on mortgage affordability. The widely used affordability index is calculated as the ratio of average monthly disposable income per capita to the average monthly mortgage payment.

An index value above 100 percent means that the population's disposable income is sufficient to cover mortgage payments, while a value below 100 percent indicates that the monthly mortgage payment exceeds disposable income," the information notes.

Furthermore, according to the Medium-Term Expenditure Framework of the Ministry of Finance of Azerbaijan for 2027-2030, the state budget for 2027 allocates 335.2 million manats for housing and communal services.

According to the document, these expenditures will account for 0.8 percent of total state budget expenditures.