The wide range of rental prices for country houses in the capital and surrounding areas, starting from 1,000 manats and going up to tens of thousands of manats, draws attention. These differences raise questions related both to the market structure and the balance of supply and demand. So, what are the reasons for such variability in prices, and why does demand for country houses not decrease despite the high amounts?
According to Medianews.az, Khalid Kerimli, an economist expert who gave a statement to Demokrat.az regarding the issue, stated that the main reason is the seasonality factor.
"That is, demand sharply increases within a short period, which results in price rises. When supply is limited, a short-term increase in demand leads to a rise in prices of country houses. This is the effect of the classic law of supply and demand. Seasonality is high in this business. The wide range of price changes is related to market segmentation. The offered products are not the same. Medium-level country houses are usually priced between 1,000 and 3,000 manats per month. Premium and VIP villas are offered at higher prices, above 10,000 manats. Prices of 40,000 manats are also possible, and these belong to a higher segment."
The expert noted that one of the main factors affecting the price is location.
"Country houses in areas such as Mardakan and Bilgah are more expensive. The reasons are proximity to the sea, amenities, having a pool, size of the area, landscape, and overall environment. A country house with the same features can be cheaper in Novkhani but offered at a higher price in Mardakan-Bilgah because these areas are recognized as more prestigious and elite environments, with better infrastructure and road conditions. Despite the high prices, there is demand in the market. It is normal for prices to rise when people direct themselves to the same product at the same time due to seasonal factors. At the same time, the increase in citizens’ incomes also affects this process. If there are individuals renting for 20–30 thousand, even 40 thousand manats, it means there are buyer groups who can afford these prices."
According to him, additionally, the daily rental market also influences price formation.
"For example, daily prices for medium-level country houses are around 200–300 manats. The widespread nature of daily rentals also affects the overall price increases. As a result, the presence of customers in the market correlates with the high prices. Those paying higher amounts receive broader opportunities, higher comfort, and luxury services, which are among the main factors shaping these prices."