Cost of Living in Azerbaijan

Recent global events, including oil price changes and regional developments, have shaped the cost of living in Azerbaijan. With an inflation rate of 3.5 percent, the country is stable economically. Baku, the country’s capital and business hub, ranks among the more affordable expat cities worldwide.

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.

Expat salaries are often quite competitive, particularly in sectors like oil and gas or finance. Some employers still consider Azerbaijan a hardship posting, which typically means generous compensation packages. Many companies provide benefits like housing and schooling allowances, making your life here more comfortable and offsetting the higher costs in the capital.

Cost of accommodation in Azerbaijan

Accommodation in Azerbaijan will likely be your biggest expense if it’s not included in your relocation package. In Baku, housing costs have steadily risen in desirable areas, with furnished flats and serviced apartments in popular districts commanding significantly higher rents than unfurnished options in less central locations. Rental prices vary widely based on location, building quality, amenities, and furnishing level.

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, as housing benefits are a standard component of expat packages.

Renting Accommodation in Azerbaijan

Cost of transport in Azerbaijan

Transport costs in Azerbaijan are remarkably affordable, despite some recent increases. Driving is still quite economical compared to many Western countries, with a well-maintained road network making car ownership a practical option, particularly if you have a family or enjoy exploring beyond Baku’s city limits.

Public transport in Baku is both budget-friendly and efficient. The Metro system has expanded to include 28 uniquely designed stations. Bus fares are extremely low, making daily commuting highly economical. The city’s public transport network has seen major improvements, including the 2023 introduction of QR ticket payment systems across all Metro stations. While the system doesn’t match the extensive networks of major European capitals, it works well for getting around central Baku.

Transport Options in Azerbaijan

Cost of groceries in Azerbaijan

model house and coins

Grocery shopping in Azerbaijan is best done using traditional markets as well as modern supermarkets. The country’s good climate produces plenty of fresh, seasonal, budget-friendly local food. In Baku, check out Yashil Bazaar near the train station, where locals sell organic vegetables, grapes, and Azerbaijan’s famous pomegranates – a great way to experience Azerbaijani culture while saving money.

For convenience shopping, Baku boasts numerous supermarket chains offering international products alongside local goods. While imported items carry premium price tags, the expanding retail scene means you’ll find most familiar products. Many expats adopt a mixed shopping approach – buying fresh produce and local specialities at markets, while getting imported comforts from supermarkets.

Cost of entertainment and eating out in Azerbaijan

Entertainment and dining in Azerbaijan give good value while showing off the country’s rich culture. Baku’s food scene has changed a lot, with the city now offering many types of food from traditional Azeri dishes to international restaurants, all cheaper than in Western Europe or North America.

Baku’s events calendar now includes the Baku International Jazz Festival, ANIMAFILM Festival, and many seasonal celebrations. Fountain Square is the main nightlife area, perfect for evening walks. The city’s entertainment – from rooftop bars to performances at historic venues – costs much less than in other major cities, making social life in Baku both fun and affordable.

Cost of education in Azerbaijan

Education options in Azerbaijan for expat families have expanded in recent years, with several established international schools in Baku serving the international community. These schools offer various curricula including British, American, and International Baccalaureate (IB) programmes, ensuring your child can continue their education smoothly.

Fees for international schools vary considerably, so securing an education allowance in your relocation package is essential. Competition for places can be high at the most sought-after schools, making early application advisable.

International Schools in Azerbaijan

Cost of healthcare in Azerbaijan

Healthcare in Azerbaijan continues to develop, although it remains considerably behind Western European standards. While public healthcare is technically available to everyone, including expats, you’ll find the quality and facilities quite limited compared to what you may be accustomed to.

Private healthcare in Baku has seen substantial growth, with numerous private clinics and hospitals now catering specifically for the expat community. These facilities offer English-speaking staff, modern equipment, and more comfortable surroundings, although at substantially higher costs than public options. For specialised or complex procedures, many expats still choose to seek treatment in neighbouring Turkey or elsewhere in Europe.

Comprehensive international health insurance with medical evacuation coverage is absolutely essential for your time in Azerbaijan. Most employers providing expat packages include health insurance, but you should verify the specifics of your coverage, particularly regarding evacuation services, which can be critically important in emergency situations.

Healthcare Options in Azerbaijan