Financial Safety Buffers for Azerbaijani SMEs:

Housing prices in Baku are rising again. But the current upswing differs from previous cycles, when property values increased almost automatically alongside oil revenues and a stable manat. The market is becoming far more selective: capital is concentrating in a limited number of districts and projects, while parts of the aging Soviet-era housing stock are gradually losing investment appeal.

On the streets of Baku, it is becoming increasingly difficult to distinguish between the old oil-driven Azerbaijan and the new country trying to integrate itself into the global economy of the twenty-first century. Between Soviet-era Ladas, decade-old Toyota Prius hybrids and new Chinese electric vehicles, something larger than a transportation story is unfolding. Azerbaijan’s automobile market is gradually becoming a reflection of social change, rising consumerism, a growing credit economy and China’s expanding influence.

It is difficult to find a district in Baku today where a construction crane does not rise above the skyline. From the Caspian coast to the outskirts of Absheron, residential complexes continue to replace the old Soviet housing stock, while the real estate market is increasingly turning not merely into a sector of the economy, but into one of the main indicators of Azerbaijan’s financial condition.

In Azerbaijan, the beauty industry has become one of the fastest-growing segments of the service economy over the past decade. This sphere is developing as a complex ecosystem of services that includes cosmetology, dermatology, plastic aesthetic medicine, hairdressing and salon services, wellness and recreational centers (spa), healthy lifestyle (wellness) services, professional makeup and hair design, as well as integration with the digital influencer economy. According to international approaches to the beauty economy, this sector is now regarded not only as a consumer service but also as a system of employment and an import-dependent economy.