If you’re moving to Azerbaijan, you’ll find that recent global events, including fluctuations in oil prices and regional conflicts, have influenced the cost of living. Despite these challenges, Baku, the country’s capital and business hub, remains relatively affordable compared to many other cities. Mercer’s 2024 Cost of Living survey ranks Baku 171st out of 226 cities worldwide, making it a more budget-friendly option for many expats.

Your expenses will vary depending on the area you live in as well as your lifestyle preferences. Accommodation and other living costs are generally steeper in Baku than in other parts of the country, especially if you’re interested in living in the city centre or opting for premium services and amenities.

Salaries for expats are often quite competitive, particularly in sectors like oil and gas or finance. Azerbaijan is still considered a hardship destination by some, which often means generous compensation packages for expats willing to make the move. It’s common for companies to provide benefits like housing and schooling allowances, making life here more comfortable.


Cost of accommodation in Azerbaijan

Accommodation in Azerbaijan is likely to be your biggest expense if it’s not included in your relocation package. In Baku, furnished flats and serviced apartments in popular areas are priced at a premium compared to unfurnished options in less central locations. Rental prices can vary significantly based on the area, the building’s amenities, and the level of furnishing.

Many companies, particularly in the energy sector, provide housing or allowances for their international staff. If you’re moving to Baku, check with your employer to see if accommodation is covered. From panoramic views of the Caspian Sea to high-tech security and gyms, these properties are designed to provide comfort and convenience.


Cost of transport in Azerbaijan

The cost of transport in Azerbaijan has seen some recent increases, largely due to rising fuel prices. Despite this, driving is still quite economical compared to many Western countries. With a decent road network and relatively low fuel costs, having a car can be a great option, particularly for those with families or those who enjoy exploring beyond the city limits.

Public transport, including the Baku Metro and bus network, is affordable and easy to navigate where it's available. Monthly transport passes are an economical choice, making getting around the city convenient without spending a fortune. While the quality and reliability of public transport may not quite match that of major European cities like Berlin or Paris, it gets the job done.


Cost of groceries in Azerbaijan

Grocery shopping in Azerbaijan can be an adventure in itself, with an interesting mix of local and international options. The country’s favourable climate makes local produce plentiful, fresh, and affordable. You’ll find festive local markets selling everything from juicy pomegranates to locally produced cheeses, a colourful and enjoyable way to immerse yourself in the local culture while keeping your costs down.

Supermarkets also stock a decent range of international products, but imported items tend to come with a higher price tag. It’s all about striking the right balance – adopt the local flavours while indulging in a few comforts from home when you need them.


Cost of entertainment and eating out in Azerbaijan

Whether you’re indulging in Azeri cuisine or enjoying a night out, entertainment and dining in Azerbaijan offer plenty of bang for your buck. Baku, with its cosmopolitan vibe, boasts a variety of dining experiences, from casual eateries serving traditional dishes to upscale venues offering a fusion of international flavours.

When it comes to entertainment, Baku has something for everyone. The city teems with music, theatre, and cultural festivals throughout the year. Whether you fancy catching a concert, visiting a gallery, or dancing the night away, you’re spoilt for choice. Dining out and entertainment costs have risen slightly, but compared to many global cities, nights out in Baku can still be surprisingly affordable.


Cost of education in Azerbaijan

If you’re moving with children, you’ll likely consider enrolling them at one of the international schools in Azerbaijan. Baku offers several international schooling options catering primarily to the expat community. These schools offer a range of curricula, including British, American, and International Baccalaureate (IB) programmes, ensuring your child continues their education in a familiar framework.

Fees for international schools can vary widely, and it’s wise to ensure your relocation package includes an education allowance to help manage these costs. From well-equipped classrooms to diverse extracurricular options, these schools are designed to offer a complete education that meets international standards, giving you peace of mind about your child’s learning journey.


Cost of healthcare in Azerbaijan

The healthcare system in Azerbaijan has made significant strides in recent years, with many public hospitals and clinics undergoing modernisation to meet contemporary standards. Public healthcare is accessible, but many expats prefer private healthcare services for their quality and shorter waiting times.

Private clinics, particularly those that cater to the expat community, offer services with English-speaking staff and provide a higher level of comfort and care. Many expats choose to travel abroad for complex procedures or specific treatments, particularly to neighbouring countries known for advanced medical services.

It’s essential to have comprehensive health insurance that includes coverage for potential medical evacuations, ensuring you have access to the best care whenever needed.


Cost of living in Azerbaijan chart

Prices may vary depending on the product and service provider. The list below shows average prices for Baku in October 2024.

Accommodation (monthly rent)
Three-bedroom apartment in the city centreAZN 1,700
Three-bedroom apartment outside the city centreAZN 800
One-bedroom apartment in the city centreAZN 800
One-bedroom apartment outside the city centreAZN 500
Food and drink
Dozen eggsAZN 2.45
Milk (1 litre)AZN 2.40
Rice (1kg)AZN 4.25
Loaf of white breadAZN 0.85
Chicken breasts (1kg)AZN 8.05
Pack of cigarettes (Marlboro)AZN 6.15
Eating out
Three-course meal for two at a mid-range restaurantAZN 65
Big Mac MealAZN 13.30
Coca-Cola (330ml)AZN 1.20
CappuccinoAZN 6.30
Bottle of beer (local)AZN 2.30
Utilities/household
Mobile phone plan (monthly, calls and data)AZN 22
Internet (uncapped ADSL or cable – average per month)AZN 30
Basic utilities (average per month for a standard household)AZN 110
Transportation
Taxi rate/kmAZN 1.05
City-centre public transport fareAZN 0.55
Gasoline/Petrol (per litre)AZN 1.20

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