BAKU, Azerbaijan, October 13. In the first half
of 2026, the real gross domestic product (GDP) of Azerbaijan’s
construction sector declined by 13% compared to the same period
last year.
This was stated in the “Financial Stability Report” published by
the Central Bank of Azerbaijan (CBA).
The report notes that the decline in economic activity in the
construction sector occurred against the backdrop of a reduction in
capital expenditures from the state budget. During the reporting
period, the construction sector’s share of total GDP fell by 1
percentage point to 4.9%.
In the first half of 2026, the number of employees at
construction companies decreased by 1.1% compared to the end of
last year, totaling 118,100 people.
Over the reporting period, 9.3 billion manat ($5.4 billion) were
invested in Azerbaijan’s fixed assets from all financial sources.
Of these funds, 1.9 billion manat ($1.12 billion) were spent on the
construction sector.
Although the volume of investment in the construction sector’s
fixed assets increased by 6.6% compared to the same period last
year, the volume of investment in residential construction
decreased by 2.7%.
Certain changes were also observed in the dynamics of price
growth in the housing market. Specifically, in the first half of
2026, housing prices rose by 8.4% compared to the same period last
year.
Prices in the new-home market rose by 12.7% year-on-year, while
prices in the resale market rose by 8.3%. The report notes that,
although the pace of price growth in the new-home market remained
stable, the resale market saw a slight slowdown in the pace of
growth.
