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:
