Azerbaijan Construction Industry Report 2025: Output To Grow At An AAGR Of 3.3% During 2026-2029

(MENAFN- GlobeNewsWire - Nasdaq) The government plans to build eight solar power plants and wind farms by 2027, with a total investment of AZN4.8 billion ($2.8 billion) from local and foreign sources. These projects, with a combined capacity of 2GW, will produce 5.3 billion kWh of electricity annually, saving 1.2 billion cubic meters (m3) of gas and cutting greenhouse gas emissions by 2.5 million tonnes. Among other recent developments, UAE's state-owned energy company Masdar and Socar Green, which is a subsidiary of Azerbaijan's state owned oil company, Socar, secured funding of AZN272 million ($160 million) for two solar plants, in November 2024.

Dublin, March 27, 2025 (GLOBE NEWSWIRE) -- The "Azerbaijan Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)" report has been added to ResearchAndMarkets.com's offering.

Construction industry in Azerbaijan to expand by 4.8% in real terms in 2025, supported by investments in oil and gas, renewable energy, and transport infrastructure projects, coupled with rising foreign direct investment (FDI) in the country.

According to the Central Bank of Azerbaijan (CBA), the country attracted AZN7.7 billion ($4.5 billion) in FDI during the first nine months of 2024, marking a year-on-year (YoY) growth of 2.3%. Of the total, 79.3% went to the oil and gas sector. Improving tourism activities in the country will also boost investments in the industry this year. According to the CBA, Azerbaijan's tourism services turnover rose by 42.7% YoY in the first nine months of 2024, reaching AZN4.8 billion ($2.8 billion).

Moreover, the number of foreign visitors to Azerbaijan rose by 29.1% YoY over the same period. In December 2024, the parliament of Azerbaijan approved the state Budget for 2025, with a total expenditure of AZN41.4 billion ($24.3 billion). Under the state budget, AZN8.5 billion ($5 billion) was allocated for economic activity expenses, and AZN4 billion ($2.4 billion) for the construction and rehabilitation of the liberated territories. The education and healthcare sector will receive AZN4.9 billion ($2.9 billion) and AZN1.99 billion ($1.2 billion) respectively in the 2025 Budget. The government has also allocated AZN366.2 million ($215.4 million) to housing and communal services, including capital repair of residential buildings and other services under the state budget.
Over the remainder of the forecast period, the construction industry is expected to register an annual average growth rate of 3.3% between 2026-29, supported by investments in transport and renewable energy infrastructure projects, coupled with the government's plan to increase the share of renewable energy in the total installed electricity-generation capacity to at least 35.5% by 2030; the government also plans to reduce greenhouse gas emissions by 35% by 2030 and 40% by 2050, compared to the 1990 level.

The government plans to build eight solar power plants and wind farms by 2027, with a total investment of AZN4.8 billion ($2.8 billion) from local and foreign sources. These projects, with a combined capacity of 2GW, will produce 5.3 billion kWh of electricity annually, saving 1.2 billion cubic meters (m3) of gas and cutting greenhouse gas emissions by 2.5 million tonnes. Among other recent developments, UAE's state-owned energy company Masdar and Socar Green, which is a subsidiary of Azerbaijan's state owned oil company, Socar, secured funding of AZN272 million ($160 million) for two solar plants, in November 2024.

The projects, which are collectively worth AZN1 billion ($600 million), comprising the 445MW Bilasuvar and 315MW Neftchala plants. They will be funded by the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB), and the Asian Infrastructure Investment Bank (AIIB). The construction of the project started in June 2024, with completion scheduled by 2027.
Scope

• Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Azerbaijan, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) 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 our 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 business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Topics Covered:
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
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