Certain challenges still remain for entrepreneurs in Azerbaijan in the process of obtaining construction and operation permits.
The operational lifespan of newly built multi-storey residential buildings in Azerbaijan will be at least 100 years.
According to FED.az, this was stated by Orkhan Mammadov, Chairman of the Small and Medium Business Development Agency (SMBDA).
According to him, during the current year the Agency has received a number of appeals related to the construction sector: “The majority of them are connected with the issuance of relevant permits. In addition, the appeals covered difficulties arising during the formalization of property rights, the relocation of trees from construction sites, the acquisition of the ‘Mining Allocation’ act for the production of construction materials, as well as issues related to the change of designation of land plots owned by entrepreneurs.”
Mr. Mammadov emphasized that changes in permitting procedures should be assessed in advance on the basis of thorough analysis in terms of their impact on business activities, and that a unified electronic platform for the submission and processing of applications should be implemented in a fully functional manner: “At the same time, in order to reduce time and financial losses for SMEs, digital solutions, innovative approaches and pilot projects should be supported.”
President of the National Confederation of Entrepreneurs (Employers) Organizations of Azerbaijan, Mammad Musayev, also confirmed the existence of problems in obtaining construction permits. According to him, in 2024 the implementation of 18 procedures for granting construction permits in Azerbaijan required on average 100–112 days: “At present, these figures have been significantly reduced to 9 procedures and 40 days.”
Mr. Musayev added that in the first half of 2025 this period was further reduced to 98 days, but entrepreneurs still expect further simplification of procedures and improvement of efficiency: “Currently, entrepreneurs are compelled to apply to various state bodies on issues related to construction and permits, which prolongs the process and creates legal uncertainties.”
Reasons for difficulties in obtaining construction permits
The authorities responsible for construction permits explain the delays in the permitting process by technical and transitional factors.
Head of the Baku City Architecture and Urban Planning Department under the State Committee for Urban Planning and Architecture, Read Gasimov, stated that although the integration of the “Electronic Construction” portal with various state institutions took some time, the system has already been established and is functioning stably: “Previously, delays occurred due to technical capacities and procedural harmonization of integrated state institutions. However, this process has now been streamlined. Furthermore, in open-access mode, if deficiencies are identified in the documents, they are immediately returned to the applicant on the same day, and resubmission of the corrected document is ensured.”
Source: FED.az
