Investment Property in Baku

Investment Real Estate in Baku

Investment Property in Baku
Investment Property in Baku

Baku property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Baku.

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Search Map of Baku Investment Real Estate

Baku (, UK: /bæˈk, ˈbæk/; Azerbaijani: Bakı, Azerbaijani: [bɑˈcɯ] (About this soundlisten)) is the capital and largest city of Azerbaijan, as well as the largest city on the Caspian Sea and of the Caucasus region. Baku is located 28 metres (92 ft) below sea level, which makes it the lowest lying national capital in the world and also the largest city in the world located below sea level. Baku lies on the southern shore of the Absheron Peninsula, alongside the Bay of Baku. At the beginning of 2009, Baku’s urban population was estimated at just over two million people. Officially, about 25% of all inhabitants of the country live in Baku’s metropolitan area. Baku is the sole metropolis in Azerbaijan.

Baku is divided into twelve administrative raions and 48 townships. Among these are the townships on the islands of the Baku Archipelago, and the town of Oil Rocks built on stilts in the Caspian Sea, 60 kilometres (37 miles) away from Baku. The Inner City of Baku, along with the Shirvanshah’s Palace and Maiden Tower, were inscribed as a UNESCO World Heritage Site in 2000. According to the Lonely Planet’s ranking, Baku is also among the world’s top ten destinations for urban nightlife.

The city is the scientific, cultural, and industrial centre of Azerbaijan. Many sizeable Azerbaijani institutions have their headquarters there. The Baku International Sea Trade Port is capable of handling two million tonnes of general and dry bulk cargoes per year. In recent years, Baku has become an important venue for international events. It hosted the 57th Eurovision Song Contest in 2012, the 2015 European Games, 4th Islamic Solidarity Games, the F1 Azerbaijan Grand Prix since 2016, hosted the final of the 2018–19 UEFA Europa League, and will be one of the host cities for UEFA Euro 2020.

The city is renowned for its harsh winds, which is reflected in its nickname, the “City of Winds”.

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The financial stability of Baku has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Baku

Renting out your Baku buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Bakuare – preparation is key.

  • Set goals based on how much rental yield will be required and the local rental yield rates in Baku and be prepared to change your initial outlook.
  • Thoroughly research the Baku location with a special emphasis on fringe areas outside the main Baku metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Baku.
  • Ensure that your target investment property in Baku appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
  • You may think that managing your Baku properties yourself is an easy option, but are these savings justifiable when you run into Baku red tape? Physis Realty Baku office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Baku buy-to-rent sector.

With our expert guidance, investing in Baku provides the secure knowledge that your money is working harder than it would in a local Baku bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Baku, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Baku property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Baku

Flipping property in Baku

Flipping property is when we advise clients to buy a Baku property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Baku market has a time to react to the renovation.

The Flipping Strategy in Baku

Investment property flipping in Baku is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Baku real estate investments are sometimes referred to by professionals as ‘distressed’ Baku real estate.

What is distressed Baku property:

  • Baku property in need of renovation
  • Baku real estate with a change of puropose and use
  • Oversold Baku property
  • Bank repossessions in Baku

Put simply, long term investors in Baku purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Baku investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Baku property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Baku use a minimum profit value of 22% when looking at potential Baku projects. The reason for this is because there are lots that can go wrong in Baku property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Baku

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Baku, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Baku should be entrusted to only the highest-quality agency.

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