Construction is an integral part of non-oil sector of Azerbaijan and its regions. The construction industry occupies one of the most important places in the economic system of the country in terms of sustainable development. Production in this sector is being increased in past years with high rates, including by both state and private sectors. Hundreds of private dwelling houses, administrative objects, financial centers, bridges and underground highways, recreation centers, hotels have been built in Azerbaijan therefore leading to considerable changes in its urban planning and architecture.
There are prospective opportunities in the long term, due to the demographic changes in Azerbaijan, and the ongoing, rapid urbanization of the country is a key driver of opportunities in the sector. The cities are growing and this has driven growth in the sector. Major investment opportunities in construction sector include production of building, finishing materials, artificial marbles, limes, construction glass, cement and concrete blocks.
According to the targets set forth in the Strategic Road Map on Provision of Affordable Housing in the Republic of Azerbaijan, the construction sector attracted over 900 million manats of investment in 2020. This creates an additional 10,000 jobs in the construction sector and stimulate the demand in construction materials to be supplied locally.
The construction industry in Azerbaijan is expected to grow, owing to the continued restoration and reconstruction work in liberated territories, as well as the execution of major energy, transportation and housing infrastructure projects. Over the medium and long terms, growth in the construction industry is likely to be driven by developments in non-oil sectors, as the government continues its plan to diversify the country's economy.