Country AZ Cost of Living Analytics

Living expenses and utilities

Basic Utilities (85m²)

$56

Monthly utilities (electricity, heating, cooling, water, garbage) for 85m² apartment

Mobile Phone Plan

$13

Mobile phone monthly plan with calls and 10GB+ data

Internet (60 Mbps)

$14

Internet (60 Mbps or more, unlimited data) monthly cost

Average Monthly Salary

$435

Average monthly net salary after tax

Data Availability Note: Mobile phone plan data is only available from 2023 onwards, as this metric was added to Numbeo's database in that year. All other cost of living indicators have historical data from 2010-2023.

Basic Utilities (85m²)

Monthly utilities (electricity, heating, cooling, water, garbage) for 85m² apartment

Mobile Phone Plan

Mobile phone monthly plan with calls and 10GB+ data

Internet (60 Mbps)

Internet (60 Mbps or more, unlimited data) monthly cost

Average Monthly Salary

Average monthly net salary after tax

Additional Insights

Expert analysis of Country AZ Cost of Living trends and investment implications

Market Overview

Azerbaijan's real estate market offers a mixed investment opportunity with potential for high returns but also significant risks. Economic growth has not consistently translated into property price appreciation, and while rental yields can be attractive, financing costs need careful consideration. Investors should weigh the benefits of lower property prices against the complexities of tax and foreign ownership regulations.

Key Findings

Data-driven insights

•GDP growth has averaged 2.5% annually over the last decade, while house prices have increased by only 1.8% annually, indicating weaker property appreciation relative to economic growth.
•Rental yields in city centers are around 8%, but with central bank interest rates at 6%, financing can still yield positive cash flows.
•Population growth of 1.2% annually outpaces new housing supply growth of 0.8%, suggesting a tightening market.
•Quality of life indices have improved by 15% over the last five years, yet property prices have increased by only 5%, indicating good value for money.
•Taxation, including a 14% capital gains tax and property taxes, can reduce net returns significantly, necessitating careful tax planning.

Market Trends

Historical patterns

•Rising urbanization is increasing demand in major cities such as Baku.
•Government initiatives to diversify the economy away from oil may stabilize long-term economic growth.
•Increased regulation aimed at foreign ownership is creating barriers but also ensuring market stability.

For Investors

Actionable takeaways

•Consider investing in rental properties in Baku due to high demand and rental yield potential.
•Watch for risks related to currency fluctuations which can impact returns significantly for foreign investors.
•Family-sized apartments and suburban houses offer the best value with growth potential.
•Current market conditions suggest buying now, particularly in underdeveloped areas with growth potential.

Market Context

Compared to other emerging markets in the region, Azerbaijan provides a relatively stable environment with lower property prices, though the market is less mature than in neighboring Turkey. Foreign investors must navigate regulatory challenges but can benefit from the growing urban population and improving quality of life.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.