Shorouk Express
BAKU, Azerbaijan, January 9. This year, both
the real estate and construction materials markets in Azerbaijan
are expected to experience price increases, Chairman of the
Azerbaijan Society of Appraisers and economist-expert, Vugar Oruj,
told Trend.
While sharing the latest forecast, Oruj emphasized that one key
factor driving the price increase is the growth of Azerbaijan’s
economy.
“The second factor is related to changes in the purchasing power
of the manat, as well as rising utility and energy prices, all of
which increase costs. This also leads construction companies and
entrepreneurs to adjust their prices. The beginning of
reconstruction works in the territories liberated from occupation
has led to a surge in construction market activity. This is another
factor contributing to the rise in construction material prices. At
the same time, demand for construction materials has increased,”
Oruj noted.
According to him, there has been a noticeable uptick in
multi-story building construction in the capital city.
The ongoing Ukraine-Russia war has also had a significant impact
on the construction materials and real estate markets in
Azerbaijan. Azerbaijani nationals who had invested in these
countries are now redirecting their investments back to Azerbaijan.
These investments have largely been directed toward the real estate
market, as property investments are considered both profitable and
safe. This growing interest in real estate has spurred the
construction of new residential and commercial buildings, further
driving demand for construction materials. As demand rises, so do
prices.
This year, a price increase of 12-15 percent is expected in the
primary construction market compared to the previous year, which
will also reflect on the cost of construction materials.
The table below shows price changes for individual building
materials:
