"Why do investors invest in these apartments?"

In Baku, there are reports about the mass sale of apartments in old buildings known as "Khrushchyovkas," particularly in five-story buildings. How will this affect prices in the housing market?

Real estate expert Elnur Farzaliyev stated that since 2016, demolition of old buildings, especially dilapidated ones with expired service life, has begun through pilot projects. "To date, dozens of multi-apartment buildings and individual houses have been demolished, and new buildings have been constructed in their place. If we look at the practices of other countries, we will see that apartments in buildings with expired service lives are sold at prices 50% lower than new ones.

Currently, there are about 11,000 apartments in Baku located in buildings that have reached the end of their service life.

The expert added that since the demolition work began under pilot projects, the prices of apartments in such buildings have sharply increased. "There are various reasons for the price increase.

The owner of an apartment in a demolished building is given a larger and renovated apartment in the new building. The provided apartment is twice as expensive as the citizen's old apartment. Therefore, apartments in buildings at risk of demolition are not sold, and their prices increase. The buyers of these apartments are mainly investors. After the old apartment is demolished and the new one is built, they put the new apartment for sale and sell it at double the price. Additionally, when multi-story buildings are constructed, rental payments are also made, which is an additional profit," the expert stated.


©