Statistic
Statistic
Statistic
Chart
Indicator
2024
2023
2022
2021
2020
2019
Investments directed to fixed capital: total
5353573,1
4727554,7
3523728,4
4033232,1
3178451,0
3550443,4
Investments directed to fixed capital: local
4950115,3
4221228,0
2944556,1
3275226,0
2757031,3
2895874,0
Investments directed to fixed capital: foreign
403457,8
506326,7
579172,3
758006,1
421419,7
654569,4
The number of residential buildings put into operation : in Baku
3176
2631
-
-
-
-
The number of residential buildings put into operation: in Azerbaijan
11670
10365
11441
11158
11492
13794
Capital Investments: In the first half of 2024, capital investments in Azerbaijan increased by 9.4% year-on-year, reaching approximately 8 billion AZN (4.7 billion USD). Investments in the non-oil sector showed particularly strong growth, rising by 12.6%.
Future Development: The construction sector is expected to grow by 2.6% in real terms in 2024. Between 2025 and 2028, the average annual growth rate (AAGR) is projected to be 4%. This growth will be supported by investments in transportation, renewable energy, and housing projects.
Market Size: In 2023, the value of the construction market was 10.6 billion USD. The average annual growth rate (AAGR) is projected to exceed 3% between 2025 and 2028.
Gross Domestic Product (GDP): In June 2024, the GDP in the construction sector was recorded at 1,725.40 million AZN, slightly lower than in March, when it stood at 1,730.60 million AZN.
GDP in the Construction Sector: In the second quarter of 2024, Azerbaijan’s GDP in the construction sector reached 596.10 million AZN, an increase from 381.90 million AZN in the first quarter of 2024.The average GDP in the construction sector from 2001 to 2024 was approximately 556.88 million AZN, with a peak of 1,345.30 million AZN recorded in the fourth quarter of 2014.
In 2023, the construction sector contributed approximately 7% to Azerbaijan’s GDP, representing a 0.5% increase from 2022. This once again highlights the importance of construction in the country’s economic development.
In 2023, the total volume of the construction market of Azerbaijan was estimated at a record value of 18.36 billion manats. However, the average annual growth rate predicted between 2025 and 2028 will be more than 4% and it is expected to reach 22.34 billion manats in 2028.
In 2023, the share of non-state-owned enterprises in the total volume of construction work carried out in the Republic of Azerbaijan reached 88.8%. Additionally, investments in the construction sector increased by 110% compared to 2022, reaching a record level of 11,220,338,800 AZN.
The infrastructure sector led the construction market in 2023 due to state investments in road construction and transportation projects. Additionally, residential areas have significantly increased, with the per capita living space growing from 17.6 m² to 20 m² over the past 10 years. Furthermore, this figure is planned to rise to 25 m² per person by 2040.
In recent years, there has been a significant increase in the production of construction materials in Azerbaijan. Cement production rose by 14.7%, concrete products by 7.4 times, and lime production by 2.1 times. The highest growth was recorded in reinforcement bar production, which saw an annual increase of 85.1% in 2024.
Investments in renewable energy projects in Azerbaijan aim to increase the share of alternative energy production to 30% by 2030. Through such green initiatives, the goal is to reduce greenhouse gas emissions by 35% by 2030 compared to 1990 levels.
In 2023, the value of construction materials produced in Azerbaijan exceeded $647 million, marking a 31.8% increase from the previous year. This growth continued into January 2024, with an impressive 34.5% rise compared to the same month last year.
By the beginning of 2024, investments in fixed capital had already surpassed $1.55 billion, a 15.5% increase compared to the same period in 2023. Notably, 72.8% of these investments were directed towards construction and installation projects.
In 2022, the construction sector contributed around 6.4% to Azerbaijan’s GDP, which is roughly 5 billion AZN. This marks a consistent increase of 5.5% since 2020, underscoring the sector’s growing significance within the national economy.
In recent years, Azerbaijan has made substantial investments in transportation and utility services. In 2024, funding for these projects is expected to rise by 20%, which translates to an additional 1 billion AZN. These investments aim to modernize the country’s infrastructure and support its economic growth.
