Azerbaijan's housing market is showing an alarming trend: prices are rising significantly faster than the population's income. In the second quarter of 2026, prices for new construction increased by 12.4%, while the average nominal wage grew by only 7%, creating a gap of 5.4 percentage points in favor of rising housing costs.
The picture is even more severe when looking at absolute numbers. Over the year, an average worker's annual income increased by approximately 920 manats (before taxes), while a typical apartment of 65 square meters in Baku increased in price by 19–20 thousand manats. The secondary market grows more slowly — by 8.6%, and rental prices — by 7.4%.
How many years does it take to save for an apartment?
According to data from the m2map platform, which analyzed more than 82,000 active listings, the median housing cost in Baku is approximately 2735 manats per square meter, which means that an apartment of 65 m² would cost 177–178 thousand manats (~105 thousand dollars). At an average monthly salary across the country of 1174 manats, a person would have to save all their income for 12.5 years — if they didn't spend anything on living. In Baku, where the average salary is higher — 1487 manats — this period is reduced to 10 years.
In practice, the situation is even more complicated. If a buyer can only save 20% of their salary, it would take them approximately 50 years to accumulate the full cost of housing. Even for a down payment under a standard mortgage — approximately 28 thousand manats — it takes almost 8 years to save.
Sectoral differences aggravate the problem
The average salary of 1174 manats is a nominal figure before taxes and social contributions and does not reflect the real income of most workers. According to the State Statistics Committee, in the first five months of the year, people working in commerce earned 763 manats, in education — 825 manats, in tourism and food service — 800 manats. For them, a typical apartment in Baku is equivalent to their combined salary for a full 18–19 years.
Can a mortgage solve the problem?
The State Mortgage and Loan Guarantee Fund provides loans for a maximum amount of 150 thousand manats at 8% per annum for up to 25 years with a minimum down payment of 15%. However, due to high prices, these parameters prove insufficient: 85% of the cost of an apartment of 177–178 thousand manats exceeds the established limit, so the buyer will have to invest at least 27.5 thousand manats of their own funds. When registering a loan for the remaining 150 thousand manats, the monthly payment will be approximately 1158 manats — practically the entire salary of an average worker.