Real estate should be built around a “lifestyle” concept rather than merely the construction of buildings, said PASHA Holding Chief Executive Officer Jalal Gasimov during a panel discussion on “Investment Opportunities in the Real Estate Sector” held as part of the “Azerbaijan Investment Outlook Forum” within the framework of the Islamic Development Bank Annual Meetings in Baku, APA-Economics reports.
According to him, mixed-use projects that include restaurants, retail areas and service infrastructure not only increase asset value but also expand economic activity.
“By doing this, you are not actually selling square meters, you are selling a lifestyle. People who want a lifestyle should be able to live it and feel it. That is why people buy even before the project is fully completed. But you cannot sell them the future life because they have not experienced it yet. Once the project is completed, if it is properly designed, the value always increases.”
Jalal Gasimov noted that, from an economic perspective, for entrepreneurs this means having an appreciating asset that can be used as collateral.
“With such an asset, they can obtain larger credit lines from banks and invest in their businesses. For other people, it is simply wealth. As wealth increases, people tend to spend more because spending becomes easier when they are wealthier. And spending is important for the economy.”
“We are also implementing branded residences projects. This is not only about a name, but also about high-level services, and it plays an important role in attracting foreign investors. Experience shows that the share of foreign investors in such projects is higher,” he noted.
The CEO emphasized that, from an economic perspective, the import component in luxury projects increases, which is not always considered ideal, as the share of local production and labor tends to decline.
“Nevertheless, attracting foreign investment is important, and high-quality branded projects are among the key tools for achieving this. At the same time, government support is also important. Visa policy, in particular, plays a significant role in this regard. For example, in Dubai, those who purchase real estate are granted a 10-year residency visa. Azerbaijan also needs improvements in this area.”
He added that property registration and legal transparency are equally important.
“It should be ensured that foreign buyers can fully register property in their own names and use it as collateral at banks. If implemented properly, this approach can generate a broad spillover effect for the economy. However, this requires close cooperation between the private sector and the government.”
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