S&P: Azerbaijan housing price growth to slow
International rating agency S&P Global Ratings forecasts that the pace of housing price growth in Azerbaijan will slow in 2026 compared to previous years, though a decline in property prices is not expected.
S&P analysts predict that inflation-adjusted residential property prices in Azerbaijan will rise by 5–6% in 2026. This marks a noticeable moderation in growth compared to earlier years when the real estate market saw faster price increases, News.Az reports, citing local media.
S&P attributes the slowdown to several factors, including slower credit expansion, moderating economic growth, and expectations around global oil prices, which continue to influence Azerbaijan’s broader economic outlook.
Despite the cooling pace of price growth, S&P emphasized that Azerbaijan’s private sector debt levels remain among the lowest in the region. Household debt stands at 15% of GDP, while corporate debt accounts for 11% of GDP, indicating relatively low financial vulnerability.
Previously, S&P had projected housing prices in Azerbaijan to rise by 10–15% in 2025. Official data from the State Statistics Committee shows that housing prices increased by 12.2% year-on-year in 2025, aligning with earlier forecasts.
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