The price dynamics in the real estate market in areas at risk of flooding is a topic of discussion. There are different approaches regarding how the value of houses located in such areas is formed and their impact on the market.
Real estate and construction expert Elnur Azadov stated in an interview with Demokrat.az that recent events, especially issues related to sewage and infrastructure, have begun to emerge as an important factor in the real estate market:
"This effect will be felt more throughout the current year but may gradually lose relevance over time. Currently, city executive bodies in Baku have started projects to construct small collectors in various parts of the city, especially in places lacking sewage systems, and these works are already being carried out. Previously, problems were felt more acutely due to the absence of such infrastructure, but recent progress has been observed in this area. On the other hand, this situation also influences consumer behavior. After recent events, for at least the next 6 months to a year, individuals wanting to buy private houses will pay particular attention to the presence of sewage lines when making their selection. This, in turn, will cause certain differentiation in the market. That is, it is expected that demand and prices will increase in areas with sewage systems and fewer risks. However, areas with infrastructure problems will be less attractive to buyers, and as a result, price increases in those locations might be weak or might not be observed at all. Generally, it is not possible to make serious predictions about prices. Everything depends on the demand formed in the market and the citizens' stance. Currently, there is no official statistics on this issue, and there is no precise information about how much damage various areas have suffered. Therefore, neither I nor other experts can conduct deep analyses and make specific forecasts. However, it is certain that this will affect the market. Demand will be higher in areas with sewage systems, where there are no problems, and in relatively higher locations. Interest will be lower in risky and potentially problematic areas."
It should be noted that in the last two days, record rains have fallen in Baku and the Absheron Peninsula. The amount of precipitation was six times above normal. Official statements indicate that the last time Baku saw such rainfall was in 1988.