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Housing market
Relocation of Dernegul building materials market threatens price spikes The planned relocation of the building materials market from Dernegul to the Absheron Trade Center is expected to drive up costs for sellers due to transfer expenses and higher rental fees, ultimately pushing up prices for wood, iron, cement, and other construction supplies (axar.az).
Infrastructure projects
Multi-billion-dollar allocations slated for Karabakh and Eastern Zangezur State budget forecasts indicate that 13.2 billion manats will be channeled into the restoration and reconstruction of liberated territories across the Karabakh and Eastern Zangezur economic regions between 2027 and 2030 (axar.az). Meanwhile, the deadline for obtaining construction permits for solar power plants on designated renewable energy land in the Jabrayil district has been extended by one year (axar.az).
Market signals
- State budget revenues for 2027 have been revised upward by 20 million manats, signaling continued government expenditure capacity (axar.az).
- Financial regulators and institutions highlight that mortgage and credit segments remain stable, with systemic risks from non-performing loans evaluated as controlled (apa.az).
Risks to watch
- Supply chain and material cost inflation driven by commercial real estate market relocations and logistic center adjustments (axar.az).
- Potential project delivery delays if utility connections and infrastructure development in regional hubs face localized bottlenecks.
Actionable insights
- Review and recalculate procurement budgets for ongoing construction projects to account for expected rises in building material costs following the Dernegul market relocation (axar.az).
- Check current project timelines in the Jabrayil renewable energy zone to optimize the newly extended one-year window for solar plant permitting (axar.az).
- Audit existing supplier contracts for raw materials like cement and steel to lock in predictable pricing before retail market shifts take full effect (axar.az).