The present report is a diagnostic Economic and Sector Work (ESW) on the housing sector in Greater Baku. It was prepared in response to the Ministry of Economy and Industry (MOEI) request to analyze the housing situation in Greater Baku. Its primary objective is to support the Government of Azerbaijan in undertaking evidence based decisions and to inform policy reform in the housing sector through a broad housing sector analysis. The intended primary audience is the Government of Azerbaijan, including Greater Baku city mayor, city managers, international partners and other stakeholders engaged in the housing sector.
This ESW relied mainly on primary data collected through a Household Survey carried out in Greater Baku Region, focus group meetings, information gathered from secondary sources and discussions with relevant government and non-government agencies. It should be noted that data availability was a key constraint due to three reasons: there is very limited housing data being collected in the country, data collected is insufficient, incomplete and often unreliable and fragmented across several government agencies; (ii) the team had no access to micro-data such as the Household Budget Survey’s; and iii) key socio-economic related questions critically needed to analyze housing affordability were removed from the Household Survey questionnaire upon the request from the MOEI.
The Executive Summary presents the key findings from the housing sector diagnostic and main recommendations. It covers findings on the current state of the housing stock, the housing market, housing affordability based on existing housing finance instruments, informal housing, rental housing and multifamily building (MFB) management. While considered important, given time and resource constraint, this ESW did not have a particular focus on the analysis of land as an input for housing or on the analysis of urban planning practices and their linkage to housing.