Buying an apartment in Baku, Azerbaijan

In recent five years, there has been a significant increase in the number of foreigners investing in the real estate market of Azerbaijan. Foreign investors are actively purchasing different type of real estates in Azerbaijan, primarily in Baku. However, it’s important to note that foreign investors typically prefer to purchase residential real estate in Azerbaijan, including luxury villas and apartments.

We hope this blog post will be informative for foreign investors planning to purchase apartments from premium projects in Baku, Azerbaijan. Furthermore, if you require real estate investment consulting or legal services regarding the process of buying an apartment in Azerbaijan, do not hesitate to turn to PROCO for assistance.

Why do foreign investors purchase luxury apartments in Azerbaijan?

Naturally, various factors attract foreign investors to purchase luxury apartments in Baku, Azerbaijan. Based on our experience in the country’s property market, we will highlight some of these key factors:

  • Firstly, compared to many countries, prices of apartments in Azerbaijan are less expensive, especially for premium real estate projects. But also these prices are steadily increasing. 
  • Secondly, a number of well-known, large-scale premium real estate projects are currently being implemented in our country, especially in the city of Baku that attract foreigners to purchase premium apartments from those projects. 
  • Thirdly, every year, many foreigners from various countries relocate to Azerbaijan for economic and social reasons. Consequently, some of them purchase apartments in the country and obtain residence permits to live here.

Interestingly, unlike in other countries, the price of penthouses in Azerbaijan is lower than that of standard apartments. This pricing trend is primarily due to the local population’s limited interest in penthouses. Consequently, we witness that foreigners are particularly interested in buying penthouses.

Mortgage and developer financing options for foreigners planning to purchase luxury apartments in Azerbaijan

The legislation also allows resident foreigners to purchase premium apartments in Azerbaijan through mortgages. However, based on our practical experience, local banks typically prefer to grant mortgage loans to foreigners who have resided in Azerbaijan for several years or possess a permanent residence permit. In turn, resident legal entities established by foreign individuals can more easily secure mortgage loans if they have a proven track record of successful operation in Azerbaijan.

In addition, foreigners can more easily purchase premium apartments through developer financing options in Azerbaijan, even without a residence permit. Typically, they make a down payment, usually 30% of the apartment’s value, upfront and then spread the remaining amount over several years, interest-free. It should also be noted that in most premium residential complexes, the apartments purchased from the developer are sold unrenovated. The apartment owner is then free to customize the internal layout and interior design according to their preferences.

Buy apartment in Baku Azerbaijan

The Process of purchasing a luxury apartment in Baku Azerbaijan

In Azerbaijan, foreigners have the same rights as local citizens when purchasing apartments. They can buy any type of luxury apartment just as locals do. Additionally, for foreign investors, the process of purchasing an apartment in Azerbaijan is quite straightforward. Based on our experience, we recommend that foreign investors follow these steps when buying luxury apartments:

  1. Find the premium apartment to buy or the project to invest in: Firstly, identify your dream apartment or a real estate project worth investing in Azerbaijan. To make the most optimal investment decision, consider contacting the professional PROCO team.
  2. Determine the investment method: As mentioned above, there are several methods to purchase a premium apartment in Baku. It is highly recommended to consult with experts and choose the best investment method tailored to your needs.
  3. Ensure all legal aspects: Ensuring the legal aspects of your real estate purchase is important to prevent any potential legal risks. Therefore, do not hesitate to consult with real estate lawyers if necessary.
  4. Time to invest: So you can purchase your dream apartment in Baku, Azerbaijan.

PROCO Services for purchasing a luxury apartment in Azerbaijan

Finally, if you require professional consulting or legal assistance when planning to purchase an apartment in Azerbaijan, feel free to contact PROCO. Our team of real estate lawyers and investment consultants is ready to provide you with the necessary services related to buying a premium apartment in our country. We would be delighted to assist you and share our expertise in real estate investment.

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