Determinants of housing prices in Baku: empirical analyses

Purpose This paper aims to reveal major factors affecting housing prices (flats and houses) in Baku, the capital of Azerbaijan Republic. Design/methodology/approach Based on cross-sectional data set of 497 flats and 443 houses, polynomial regression models are estimated for flats and houses separately. Regression models are estimated by using ordinary least squares. Findings Location, largeness, repair level and existence of bill of sale are major price determinants for flats. For houses, number of rooms also matters. Findings reveals that houses are land intensive (more floors, less land area) toward city center, and vice versa. Price difference due to existence of bill of sale diminishes significantly toward the surrounding areas. Originality/value The study contributes to the literature by empirically analyzing housing market in Baku, Azerbaijan. Research produces new practically valuable findings.