This year, the pace of growth in real estate prices in Azerbaijan will weaken compared to previous years, but a decline in prices is not expected, APA-Economics reports, citing the international rating agency S&P Global Ratings.
It was noted that inflation-adjusted housing price growth in Azerbaijan is expected to be at the level of 5–6% in 2026.
This indicator shows that the pace of price growth in the real estate market has slowed compared to previous years. S&P analysts link this to slower credit growth in the country, limited economic growth, and expectations regarding oil prices.
Overall, the rating agency states that the private sector’s debt level in Azerbaijan remains the lowest compared to similar countries in the region. Thus, the ratio of household debt to GDP stands at 15%, while the ratio of corporate debt to GDP is 11%.
It should be noted that earlier, S&P had forecast that real estate prices in Azerbaijan would rise by around 10–15% in 2025. According to the latest figures released by the State Statistical Committee, housing prices in Azerbaijan increased by 12.2% last year compared to 2024.
