According to Caliber, housing prices in Baku rose 8.5% year on year in the second quarter of 2026, while mortgage lending fell in the first eight months.
According to Caliber, housing prices in Baku increased 8.5% year on year in the second quarter of 2026, and the new-build segment grew by more than 11%. Property prices have risen by roughly 70% over the past five to six years. By September 2026 the average residential price reached 2,934 manats, about $1,726, per square metre.
Prices differ sharply by district. The highest were recorded in Sabayil at 4,132 manats ($2,431) per square metre and the lowest in Pirallahi at 1,452 manats ($854).
The source links the rise partly to tighter building rules: on a one-hectare site, the permitted residential floor area was previously up to 80,000 square metres and the current limit is only 20,000 to 25,000. Land prices are expected to increase by 16% to 22% by the end of 2026.
Mortgage lending moved the other way. In January to August 2026 mortgage loans totalled 262.9 million manats, 13.7% less than a year earlier. Prices quoted for the future are the source's expectation and not a guarantee.