Investing in real estate in foreign countries is considered one of the most profitable areas of business. In recent years, Azerbaijani citizens have also actively participated in the real estate market of foreign countries. The real estate market in Türkiye is the real estate market that interests Azerbaijanis the most. For example, according to the Turkish Statistics Service, last year alone Azerbaijani citizens bought 832 apartments in this country. But statistics also say that the purchase of apartments in Türkiye by Azerbaijani citizens decreases year after year. During the first six months of 2024, Azerbaijani citizens purchased 339 apartments in Türkiye. During the first six months of 2023, this figure was 395.
But what are the reasons that encourage Azerbaijani citizens to buy property abroad? From which countries do Azerbaijanis buy houses? Compared to previous years, what is the reason for the decrease in the number of people buying apartments in Türkiye?
Experts say that Azerbaijanis are currently more interested in owning real estate in Georgia, Central and Eastern European countries, the United Arab Emirates and Qatar, in addition to Turkey. The vast majority of property buyers in foreign countries are businessmen. They invest in real estate abroad to spread their risks and make additional profits. Some entrepreneurs also have businesses in countries where they purchase real estate.
“Caspian” The newspaper published an article on the subject.
Citizens choose property, not a bank
Expert Vugar Oruj stated that as investment in real estate is considered efficient, citizens of Azerbaijan are interested in investing in this sector, both inside and outside the country: “Citizens can keep their funds in the form of deposits in banks. But this is not efficient in terms of earning profits, for example, if a citizen deposits his funds in a bank, he can earn a maximum of 8 to 10 percent during the year. real estate increases rapidly, you can earn about 15 percent. In the case of this property, income can increase up to 50 percent, so Azerbaijani investors invest from time to time in real estate in Turkey, Georgia and Dubai. “.
Hotel rooms are also sold as real estate.
According to V. Oruj, hotel rooms are sold as real estate abroad: “This trend is widespread, mainly in Dubai and Batumi. Hotel rooms located in these cities are for sale. As are citizens from other countries, Azerbaijanis are eager to “They show interest in purchasing hotel rooms in those cities. Since it is attractive and generates huge profits, investments in this direction continue even now.”
At the same time, the expert highlighted that in recent years the flow of outward investments related to the real estate sector has decreased. Currently, local investors are interested in investing in the real estate market of Azerbaijan: “This is due to several reasons: economic stability reigns in the country, large investments are made in the territories liberated from occupation and certain bureaucratic obstacles in the countryside All these local real estate direct the interest of investors to the domestic market. Currently, citizens buy real estate in and around Baku, as well as in the tourist regions of the country.
“Buy properties in some countries…”
Elnur Farzaliyev, an expert in real estate issues, believes that the main advantage of buying real estate abroad is that in many cases it allows you to obtain a residence permit and citizenship: “In some countries, buying property means obtaining citizenship of that country “. country or the right to live Currently, buying properties in Europe but real estate prices are not cheap. Additionally, each state has a limit if the property purchased exceeds that limit, this limit ranges from $200,000 to $500,000. “The country that has increased the limit in recent years is $250,000, in Turkey it increased that limit to $500,000, but there are countries like Kuwait where foreign citizens are prohibited from buying an apartment in that country.”
The earthquake has undermined confidence in the real estate market
The expert, who clarified the reasons for the decrease in the purchase of apartments in Turkey by Azerbaijani citizens in recent years, stated that this is related to the earthquake that occurred in the sister country in February 2023: “The destruction of a large number of buildings as a result of the natural disaster that covered 11 provinces in Turkey caused real estate in this country. Most of the buildings that collapsed were new buildings. As a result, confidence in the quality of existing buildings in Turkey has. diminished.
Türkiye, Arab countries and Eastern Europe
According to Nusrat Ibrahimov, CEO of the consulting firm “MBA Group”, Azerbaijanis are currently more interested in real estate in Turkey, Arab countries and Eastern European countries: “A long time ago, Azerbaijanis used to buy real estate in London. Now This process has stopped because that class is already in London. “Azerbaijanis who bought a house abroad mainly represent the middle class. “Some of them lean towards Türkiye, others towards Arab countries and others towards Eastern European countries.”
The expert stated that people see the real estate sector not only as a form of successful investment: “In recent years, our citizens are increasingly going to Turkey for leisure and education. For this they need a place to live, and each When they can afford it, instead of renting a house or staying in a hotel, people prefer to buy a unique property. Another reason to invest is the shared risk.
