Azerbaijan Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2028

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Azerbaijan Construction Market Report Overview

The Azerbaijan construction market size was $10.8 billion in 2023 and will achieve an AAGR of more than 4% during 2025-2028. Public and private investments in transport infrastructure, renewable energy projects, and housing will drive the country’s construction sector growth during the forecast period.

Azerbaijan Construction Market Outlook, 2023-2028 ($ Billion)

Azerbaijan Construction Market Outlook, 2023-2028 ($ Billion)

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The Azerbaijan construction market research report provides detailed market analysis, information, and insights into the Azerbaijan construction industry, including the industry’s growth prospects by market, project type, and construction activity. The report also delivers critical insight into the impact of industry trends and issues and an analysis of key risks and opportunities in the Azerbaijan construction industry. It also analyzes the mega-project pipeline, focusing on development stages, participants, and listings of major projects in the pipeline. The market report discusses the sectors in the construction market and provides an overview of each sector along with their driving factors.

Market Size (2023) $10.8 billion
AAGR (2025-2028) >4%
Forecast Period 2023-2028
Historical Period 2018-2023
Key Sectors ·        Commercial Construction

·        Industrial Construction

·        Infrastructure Construction

·        Energy and Utilities Construction

·        Institutional Construction

·        Residential Construction

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Azerbaijan Construction Market Segmentation by Sectors

Infrastructure construction was the leading sector in the Azerbaijan construction market in 2023.

The key sectors in the Azerbaijan construction market are commercial construction, industrial construction, infrastructure construction, energy and utilities construction, institutional construction, and residential construction.

Commercial construction: The country’s target of attracting four million foreign tourists annually by 2026 and the increasing number of domestic tourist trips to six million by 2026 drive the sector’s growth during the forecast period.

Industrial construction: The government’s investment in industrial zones and manufacturing plants in the country will fuel the market growth during the forecast period.

Infrastructure construction: The government’s execution of road construction development plans will have a positive impact on the sector’s growth during 2023-2028.

Energy and utilities construction: An increase in oil and gas production and investments in renewable energy to increase the share of renewable power production capacity to 30% by 2030 will boost the sector’s growth during the forecast period.

Institutional construction: The investment in health and educational building projects will fuel the growth of the sector in the coming years. Major developments in the sector include the State Urban Planning and Architecture Committee of the Republic of Azerbaijan’s Fuzuli Memorial Complex and Victory Park on an area of 5ha at Fuzuli in Azerbaijan.

Residential construction: An increase in building material and land prices and high base effects foster the residential sector’s growth during the forecast period. According to the State Statistical Committee, the real-estate value added rose in the first three quarters of 2023.

Construction Market Analysis by Sectors, 2023 (%)

Construction Market Analysis by Sectors, 2023 (%)

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Azerbaijan Construction Market – Latest Developments

  • The State Housing Construction Agency commenced the construction activities of the Shirvan Residential Complex in Shirvan Residential Complex in September 2023.
  • Nobel Energy, an Azerbaijan-based integrated services provider to the energy industry, intends to construct a solar power plant in the Jabrayil district.

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Segments Covered in the Report

Azerbaijan Construction Sectors Outlook (Value, $ Billion, 2018-2027)

  • Commercial Construction
  • Industrial Construction
  • Infrastructure Construction
  • Energy and Utilities Construction
  • Institutional Construction
  • Residential Construction

Scope

This report provides:

  • A comprehensive analysis of the construction industry in Azerbaijan.
  • Historical and forecast valuations of the construction industry in Azerbaijan, featuring details of key growth drivers.
  • Segmentation by sector and by sub-sector.
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

  • Identify and evaluate market opportunities using GlobalData’s standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using GlobalData’s critical and actionable insight.
  • Assess business risks including cost, regulatory, and competitive pressures.
  • Evaluate competitive risk and success factors.

Table of Contents

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Latest news and developments

4 Project analytics

5 Construction Market Data

6 Risk Profile

7 Appendix

7.1 Definitions

7.2 CRI Methodology

7.3 About GlobalData

Contact Us

Table

Table 1: Construction Industry Key Data

Table 2: Azerbaijan, Top Construction Projects by Value

Table 3: Azerbaijan, Construction Output Value (Real, $ Million)

Table 4: Azerbaijan, Construction Output Value (Nominal, AZN Million)

Table 5: GlobalData Construction Market Definitions

Table 6: Risk Dimensions

Table 7: Ratings, Scores and Definitions

Figures

Figure 1: Azerbaijan, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2019–28

Figure 2: Azerbaijan, Construction Output Value, by Sector (Real, $ Million), 2019–28

Figure 3: Eastern Europe and Central Asia, Construction Output (Real % Change), 2022–28

Figure 4: Azerbaijan, Construction Output by Sector (Real % Change), 2022–24 and 2025–28

Figure 5: Azerbaijan, Construction Value Add (Constant 2005 Prices, AZN Million)

Figure 6: Azerbaijan, Gross Fixed Capital Formation (Current Prices, AZN Million)

Figure 7: Azerbaijan, Real-Estate Value Add (Constant 2005 Prices, AZN Million)

Figure 8: Azerbaijan, Retail and Wholesale Trade Value Add (Constant 2005 Prices, AZN Million)

Figure 9: Azerbaijan, Hotels and Restaurants Value Add (Constant 2005 Prices, AZN Million)

Figure 10: Azerbaijan, Exports ($ Million)

Figure 11: Azerbaijan, Manufacturing Value Add (Constant 2005 Prices, AZN Million)

Figure 12: Azerbaijan, Educational and Healthcare Value Add (Constant 2005 Prices, AZN Million)

Figure 13: Azerbaijan, Construction Projects Pipeline, Value by Stage ($ Million)

Frequently asked questions

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