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Real Estate Investment in Azerbaijan

April 17, 2024

Over the last few years, we have seen a significant increase in the number of foreigners investing in the real estate market in Azerbaijan. Clearly, numerous factors contribute to this trend. In this article, we will specifically focus on those reasons, as well as the legal aspects of both commercial and residential real estate investment in Azerbaijan.

We hope this blog post will be informative for the foreigners planning to investing real estate in Azerbaijan. Furthermore, if you require consulting and legal services regarding the process of real estate investment in Azerbaijan, remember that you can apply for DLB Consulting’s services.

Why do foreigners invest in the real estate market in Azerbaijan?

As mentioned above, there are many reasons that attract foreigners to invest in both commercial and residential real estate in Azerbaijan. Drawing from our experience in the country’s investment market, we can highlight some of these reasons as follows:

  • Firstly, unlike in many countries, premium real estate in Azerbaijan is less expensive, yet its prices are steadily increasing. For numerous real estate projects, we have observed an average annual price increase of 15% in recent years. Additionally, the rental values of properties are consistently rising, particularly for premium real estate projects;
  • Secondly, currently, a number of large-scale premium real estate projects are being implemented in our country, especially in the city of Baku, which is one of the reasons that attract the interest of foreign investors to our country;
  • Thirdly, the stable socio-economic and cultural environment, coupled with the natural beauty of Azerbaijan, encourages many foreign investors and entrepreneurs to consider investing and living here. This, in turn, contributes to the dynamic development of the real estate market.

Rights of foreigners, legal requirements and restrictions related to real estate investment in Azerbaijan

Under the legislation of the Republic of Azerbaijan, foreigners have the same rights as local citizens to purchase residential or commercial property in the country. This rule extends to companies established by foreigners. However, foreign individuals face restrictions on directly purchasing land plots, as dictated by legislation. Nonetheless, local companies founded by foreign individuals are still permitted to purchase land plots in Azerbaijan.

Mortgage and developer financing options for foreigners

The legislation also allows resident foreigners to purchase both residential and non-residential real estate through mortgages. However, from our practical experience, local banks typically prefer to grant mortgage loans to foreigners who have resided in Azerbaijan for an extended period and possess a permanent residence permit. Nonetheless, resident legal entities established by foreign individuals can more readily secure mortgage loans if they have a proven track record of successful operation in Azerbaijan.

In addition, foreigners can buy real estate through developer financing options in Azerbaijan, even if they do not have a residence permit. Foreigners are eligible to purchase both residential and non-residential properties with this financing method. Typically, they can pay an initial portion of the property’s value upfront and then spread the remaining amount over several years, interest-free.

Obtaining a Residence Permit in Azerbaijan on the basis of Real Estate Investment

According to the Migration Legislation, foreigners investing a minimum of AZN 100,000 (approximately USD 59,000) in real estate in Azerbaijan are eligible to obtain or extend a Temporary Residence Permit in the country. Conversely, foreigners with real estate investments in Azerbaijan worth at least AZN 200,000 (approximately USD 118,000) are eligible to obtain a Permanent Residence Permit in Azerbaijan if they meet additional specific requirements.

Please note that if you require legal services related to obtaining a residence permit in Azerbaijan based on real estate investment, you are encouraged to contact our immigration lawyers.

How to Invest in Real Estate in Azerbaijan

You must follow these practical steps when investing in real estate in Azerbaijan:

  • Step 1: Decide which type of real estate you plan to invest in:

  • Step 2: Consider the Method of Investment:

  • Step 3: Find the Property You Want to Invest in or Buy:

  • Step 4: Make Sure of the Legal Details Before Closing the Contract.

  • Step 5: Sign the Contract and Pay the Property Value

Legal Services for Real Estate Investment Process in Azerbaijan

In conclusion, if you require legal assistance with real estate investments in our country, feel free to contact DLB Consulting. Our real estate lawyers will provide you with consulting and the necessary legal services related to property investments in Azerbaijan. We would be happy to assist you and share our expertise in the field of real estate investment.

Contact usOffice
For business and investment consultancy, also for legal service inquiries, please contact us through the provided options.
AZ1025, Azure Business Center, Office 137
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Stay updated with DLB Consulting by following us on our social media accounts.
Contact usOffice
For business, investment consulting, and legal service inquiries, please contact us through the provided options.
AZ1025, Azure Business Center, Office 137
FOLLOW USSocial links
Stay updated with DLB Consulting by following us on our social media accounts.

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© Copyright by DLB Consulting

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