Second hand rental market revives in Azerbaijan

One of the types of business related to real estate is second-hand rental. That is, the tenant rents an apartment to other people on a daily or long-term basis at a higher price. People who are engaged in this type of business rent apartments in advance, given, for example, that in August-September there will be more demand for housing in buildings near higher educational institutions.

How profitable is this type of business?

Real estate market expert Elnur Farzaliyev told Report that realtors rent well-renovated apartments and rent them out daily or long-term: “They rent an apartment for 800-1,000 manats (around $400-500) per month and offer it to foreigners for 70, 80, 100 manats (around $40-50) per day. “Foreigners usually rent houses daily. When foreigners come with their families, staying in a hotel is expensive. For example, a hotel room costs 50 manats ($29), and the daily rent of a three-room apartment in the city center ranges between 80-100 manats.”

The expert noted that this type of business was popular before the pandemic, but then became unprofitable: “Now there is activity in this area again. Due to the demand, many are looking for apartments for rent. But this does not mean that tenants easily find customers. Apartments sometimes are empty for months. Activity peaks when there are any international events, competitions in the country. Now this area is very active because of visitors from Russia and Iran.”