Review of construction sector in Azerbaijan (2015)

As of the second year of implementation of the State Program on Socio-Economic Development of Regions for 2014-2018, more than 400 kilometers of national and local roads, 12 new bridges and crossings were built and repaired. More than 590 kilometers of rural roads which connected 245 settlements were laid in 2015.

Two power plants were put into operation in the regions during a year.

Some 1,289 transformers and 20 substations were installed and repaired.

More than 8,200 kilometers of power lines, almost 12,500 kilometers of gas pipelines were built. Some 430 settlements were provided with gas in 43 regions. The level of gasification reached 90 percent in the country, including the regions - 80 percent.

The water projects in four cities with a population of 175,000 people were completed in 2015. More than 750 kilometers of water pipelines, 391 kilometers of sewerage lines were laid.

Up to 270 industrial enterprises, including plants for the production of technical equipment, large transformers, metal structures opened in 2015.

In particular, the construction of the Mingachevir industrial park was launched. The entrepreneurs of the Neftchala industrial park invested more than 20 million manat in the establishment of enterprises upon seven projects for three months. Some 380 new jobs will be created.

Over 1.93 million square meters of housing were commissioned in 2015 or by 12.3 percent less than 2014.

Some 293,090 square meters of housing were put into operation in Azerbaijan in December 2015 compared to 390,310 square meters put into operation in December 2014.



Compared to 2014 (percent)

residential buildings, total area, thousand sq. m

1 927,2





Pre-school educational institutions, facilities

2 182


Funds directed to fixed capital, in mln manat

15 957


- for the construction of production facilities

9 880,6


- for the construction of facilities in service sector

5 046,7


- for the construction and installation work of the total amount of funds

11 722,9


Some 66.1 percent of the total volume of construction work accounted for primary construction, reconstruction and expansion, 15.7 percent - overhaul, 5.3 percent - current repair and 12.9 percent - other construction work.

Some 84.5 percent of the total volume of construction work was carried out by non-state construction companies.

Primary housing market

The average price per one square meter on Baku's primary housing market was $958 (1,006 manat) in December 2015 or by 1.03 percent less than in the previous month.

Most of supply on the market in this period was related to the cost of apartments from $700 to $1,000 per square meter, as well as apartments worth up to $ 700 per square meter. The share of apartments in this price range in December was 50.3 percent and 20.8 percent of the total portfolio of supply, respectively. The average cost per square meter of the apartment was $832 and $609 respectively.

In the general portfolio of supply, the share of apartments worth from $1,000 to $1,300 per square meter amounted to 12.7 percent. In the reporting period, the average cost per square meter in such apartments amounted to $1,091. The remaining part of the portfolio (16.2 percent) accounted for apartments worth more than $1,300 per square meter. The average price per square meter in such apartments amounted to $1,687.

Last month, the largest number of residential buildings was built in Yasamal, Nasimi and Khatai districts of Baku. Some 70.6 percent of the entire supply accounted for them.

Thus, 42.2 percent of housing put up for sale on the primary market accounted for Yasamal district of Baku, 16.8 percent - Nasimi, 11.6 percent - Khatai, 4.6 percent - Binagadi, 3.5 percent - Narimanov, Nizami, Sabail 5.8 percent - Absheron, 2.9 percent - Sabunchu, 4 percent - Surakhani, 1.2 percent - Qaradagh, 0.6 percent - Khazar in December.

The average area of ​​apartments offered in December increased by 22.4 percent up to 114.44 square meters compared to November. The average area of ​​one-room apartments was 62.08 square meters, two-room - 89.02 square meters, three-room - 126.82 square meters, four-and five-room - 191.05 and 206.25 square meters.

The supply increased by 29.1 percent on the primary housing market in December compared to November. Three-room apartments accounted for most of supply on the primary real estate market. Some 34.1 percent accounted for them. Some 24.9 percent of the supply accounted for one-room apartments, 22.5 percent - two-room apartments, the remaining 18.5 percent - the multi-room apartments.

The average price per square meter on the primary housing market in Baku's districts is as follows:


USD/ sq. m

Change during the month (%)








1 196



1 249












1 790














Secondary housing market

According to MBA Group consulting company, the average price per square meter on the secondary housing market of Baku in dollars and manats decreased by 0.43 percent and hit $1,605 in December 2015 compared to November.

For comparison, the price of one square meter on Baku's secondary housing market in December 2014 amounted to 1,630 manat ($2,079).

During the reporting period, the supply increased by 9.9 percent on Baku's secondary market. Earlier, there were 1,083 offers on the market in November. This index increased up to 1,203 in December. The supply declined by 39 percent compared to the same period of 2014.

Most of housing was put on sale in Khatai, Yasamal, Nasimi, Narimanov districts of Baku. Some 68.4 percent of total supply accounted for these districts.

Most of the sales portfolio on Baku's secondary market in December accounted for the houses worth up to $1,500 per square meter (the average price is $1,182 per square meter). Some 55.7 percent accounted for them. The apartments varying $1,500-2,000 per square meter (the average price is $1,722) accounted for 32 percent of a total sales volume. The rest (12.3 percent) accounted for the apartments worth more than $2,000 per square meter (the average price - $2,449).

The most expensive apartment (220 square meters) was observed near "Sahil" metro station in December worth $990,000 per square meter, the cheapest two-room-apartment - in the Montin settlement of the Narimanov district (80 square meters) worth $525 per square meter.

The average market prices per square meter in Baku's districts in December 2015 are as follows:


November 2015, $/ sq. m

December 2015, $/ sq. m

Change in %






1 438

1 428



1 649

1 617



1 632

1 712



1 338

1 289



1 070

1 091



1 237

1 122



1 983

2 039



1 054

1 104



1 457

1 269



1 000




1 492

1 507


According to the index of activity, the most attractive districts of Baku were Nasimi, Yasamal and Narimanov in December. In the reporting period, the price index reduced by 0.15 points - to 6.72 points on Baku's secondary housing market.

Construction material market

The companies engaged in building material production in Azerbaijan, produced goods worth 433.7 million manat in 2015, or 6.3 percent more than in 2014, according to the Azerbaijani State Statistics Committee's report.

During this period, Azerbaijan produced 2.94 million tons of cement (a 2.4-percent increase versus the same period of 2014), 687 tons of glass fiber (36.3 percent decrease) and 195,500 tons of gypsum plaster (a 2.3-percent growth), the report said.

Azerbaijan also produced 921,100 tons of ready-mixed concrete (a 44.9 percent decrease), 474,700 tons of asphalt (a 17.9 percent growth), 22,200 cubic meters of precast concrete building structures (a 34.1 percent decrease), 10,770 tons of processed marble, travertine, alabaster and items made of them (a 2.1 times growth).

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