These Apartments in Baku Became 10 Thousand Manats More Expensive - THE REASON

The issuance of mortgage loans has positively impacted activity in the real estate market.
This was stated by Ramil Gasimzade, an expert on property issues, in a statement to İqtisadiyyat.az.

According to him, mortgage loans have particularly led to an increase in apartment prices: “At the beginning of the year – that is, before the allocation of mortgage loans – the price of two-room apartments, especially those of the “Leningrad” and “Kyiv” projects, was 145 thousand manats, whereas now this figure has reached 155 thousand manats. In other words, the introduction of mortgages has affected apartment prices by around 10 thousand manats.”

The expert, stating that the process of issuing mortgage loans is currently underway, believes that this will continue until July:

“This year, compared to previous years, the number of applicants for mortgages is not that high. Why is it decreasing? Because both apartment prices are rising, and the mortgage amount is only up to 150 thousand manats. Previously, if citizens could buy a three-room apartment using a 150 thousand manat loan, today this is not possible. Today, the price of one-room apartments eligible for a mortgage starts at approximately 120 thousand manats. In new constructions, it costs even more. Citizens mainly apply for mortgage loans for apartments in old buildings. Due to increased demand for these apartments, prices are also rising.”

It should be noted that the Mortgage and Credit Guarantee Fund has allocated limits to authorized banks for the purpose of continuing mortgage lending throughout 2026. Applications for ordinary mortgage loans began to be accepted on March 05, 2026, and applications for preferential mortgage loans on March 06, 2026. In the 2026 state budget, 100 million manats have been allocated to the Mortgage and Credit Guarantee Fund to meet the housing needs of the population and support the acquisition of housing under preferential terms.