How COP29 Will Impact the Azerbaijani Real Estate Market

How COP29 Will Impact the Azerbaijani Real Estate Market

As Azerbaijan gears up to host COP29, a significant international climate change conference, the country’s real estate market is expected to experience both short-term and long-term changes. The event, which brings together world leaders, experts, and businesses, is likely to drive increased demand for property, particularly in Baku, Azerbaijan’s capital and primary hub for international events. Here’s how COP29 could shape the real estate landscape in Azerbaijan.

1. Short-Term Impact: Temporary Housing Demand

One of the most immediate impacts of COP29 on Azerbaijan’s real estate market will be the surge in demand for short-term accommodation. With thousands of delegates, professionals, and media personnel visiting for the conference, hotels and rental properties are expected to be in high demand, particularly in Baku.

• Rental Opportunities for Property Owners: Property owners with homes in prime locations, especially in central Baku, can benefit by offering their properties as short-term rentals. Platforms like Airbnb or local real estate websites may see a spike in listings and bookings as visitors seek convenient and comfortable stays.

• Increased Hotel Occupancy: Existing hotels will experience higher occupancy rates during the event, and developers may even expedite the completion of new hotel projects to cater to the influx of tourists.

2. Long-Term Impact: Infrastructure and Real Estate Development

While COP29’s short-term effects will be noticeable, the long-term impacts could significantly shape Azerbaijan’s real estate market for years to come.

• Infrastructure Improvements: In preparation for COP29, Azerbaijan is expected to invest heavily in improving infrastructure such as roads, public transport, and utilities. This will not only enhance the quality of life for residents but also increase the attractiveness of certain neighborhoods for real estate investment.

• New Developments: Major international events like COP29 often lead to the construction of new real estate projects, including commercial and residential developments. Investors may find opportunities in these projects as the city expands its capacity to host global events and business conferences.

• Sustainable Real Estate Growth: With COP29’s focus on climate change and sustainability, there is a strong possibility that Azerbaijan will prioritize sustainable building practices. Eco-friendly developments could become more common, and buyers might show increasing interest in green-certified buildings, energy-efficient homes, and properties with eco-friendly features.

3. Global Attention and Foreign Investment

COP29 will place Azerbaijan in the global spotlight, attracting the attention of foreign investors, multinational companies, and expatriates.

• Increased Visibility for Azerbaijan’s Real Estate Market: The influx of international visitors and media coverage during COP29 will showcase Azerbaijan as an emerging market with growing potential. This visibility may encourage foreign investors to consider the country as a viable location for real estate investment.

• Sustainable Development Investments: With sustainability at the forefront of COP29 discussions, Azerbaijan may position itself as a leader in green development. Investors interested in eco-friendly real estate projects could see Azerbaijan as a prime location for long-term, sustainable investments.

4. Opportunities for Local Buyers

While COP29 will bring global attention, local buyers can also benefit from the market's evolution. Infrastructure improvements, new developments, and a growing demand for sustainable housing can create opportunities for Azerbaijanis to invest in modern properties that align with international standards.

• Affordable Housing Options: Some developments may include affordable housing to meet local demand, offering opportunities for Azerbaijani residents to invest in properties at reasonable prices.

• Upgrading Existing Properties: Property owners may also look to upgrade their homes or buildings, adding sustainable features to align with new real estate trends following COP29.