As the start of the new academic year approaches, students' search for rental apartments has accelerated. Although the number of people looking for an affordable place to live is already increasing, the limited supply in the market is driving up prices. Many students are either forced to look for a roommate or still cannot find an apartment that fits their budget. Real estate experts, however, state that demand is expected to increase even further after universities open in September, which could put additional pressure on rental prices.
Especially in areas close to higher education institutions such as Elmlər Akademiyası, 28 May, Nərimanov, and Gənclik, rental apartment prices are attracting attention. Currently, the monthly rent for one-room apartments in these areas often starts from 500 manats. So, what are the main reasons for this situation in the rental market? Can prices increase even further in September?
Real estate expert Ramil Osmanlı gave a statement to Modern.az on the topic.
He stated that it has become even more difficult for students to find affordable rental apartments on the eve of the new academic year:
"In the country, especially in Baku, the problem of rental apartments has become increasingly serious in recent years. The number of affordable apartments in the rental market is decreasing, supply is narrowing, yet demand remains high.
One of the main reasons for this is the phased demolition of one and two-story private residential houses, as well as old multi-apartment buildings, within the framework of urban development projects. As a result, the old and relatively affordable housing stock is decreasing, and its place is being taken by more expensive new constructions. This leads to a decrease in the supply of affordable rental apartments in the market.
Another important factor is that citizens who lose their homes as a result of demolition turn to the rental market for a certain period. In addition, the increasing number of people coming from abroad and those engaged in entrepreneurial activities in the country in recent years is also one of the main factors increasing the demand for rental apartments.
All these reasons condition the price increase in the rental apartment market. Especially on the eve of the new academic year, it becomes even more difficult for students to find affordable rental apartments, and problems in this direction are felt more prominently in the market.
I believe that the current situation will continue for the next few years. In the future, it is possible for the government to implement certain incentive mechanisms to stimulate entrepreneurial activity in the rental apartment market and to more actively involve the private sector in this area. However, currently, the main picture in the market has not changed: especially in the city center and areas close to the center, the supply of rental apartments is limited, and demand remains high. As a result, the upward trend in rental prices continues."
Nicat Rüstəmzadə
