One of the main challenges facing young families in Azerbaijan is owning a home. In recent years, the increase in real estate prices has further complicated this process. This, naturally, affects young people's plans to start a family and their independent lives.
So, what are the main reasons for this situation, and what steps can be taken to make it easier for young families to acquire housing?
Speaking to Ölkə.az on the topic, Vugar Oruj, Chairman of the Society of Appraisers, stated that the main problem for young families is related to housing purchases.
According to him, this problem is even more pressing now:
"As apartments become more expensive, they face problems with their sale and purchase. And even when social projects are implemented, whether through the Mortgage and Credit Guarantee Fund or through MIDA (State Housing Development Agency), current prices do not allow apartments to be affordable. To solve the problem, it is necessary to increase the number of projects. Certain concessions should be applied to the construction sector. Currently, the construction sector faces a very big problem in acquiring land plots. At the same time, increasingly complex construction regulations increase the operating costs of construction companies, consequently leading to higher prices for the product, i.e., apartments. In other words, construction materials, labor force, and construction permits have created a situation where a significant increase in the price per square meter is naturally observed."
540045
V. Oruj noted that to solve this problem, it is only necessary to increase the number of social projects and expand the volume of housing construction:
"This problem cannot be solved by other methods. Since the market is not regulated by administrative methods, intervention in prices by any state structure or other relevant bodies is not possible. From that perspective, the market regulates itself. This problem can only be regulated in one way or another by increasing the number of market participants and raising the volume of products, i.e., by increasing the volume of construction. At the same time, it should be noted that the city is already expanding towards its outskirts. This means that today, a person wishing to buy an apartment through the Mortgage and Credit Guarantee Fund can no longer buy one in the center of Baku or in areas close to the center; they can only turn to the outskirts."
Therefore, I believe that, in accordance with urban planning rules, the population, specifically young families, will be forced to buy apartments not in the city center or close to it, but in remote areas. From this perspective, I believe that increasing the number of social projects is the only solution to the problem. We have also repeatedly raised other issues, such as relocating production facilities and educational institutions to the outskirts of the city. This could lead to a reduction in congestion in Baku and a decrease in demand for apartments. Therefore, I believe that reducing the city's burden is one of the main tools in regulating real estate prices."