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Construction
Legislation
Pursuant to the Presidential Decree “On Measures to Eliminate
Monopoly and Privatize the Construction Sector”, dated 2 December
1997, the state monopoly in the construction sector has been
eliminated, and private persons may now engage in construction
activities.
The above measures along with overall economic development led
to a booming real estate market. A number of local and foreign
developers are active in the field. The hot spot of the market is
undoubtedly capital Baku city. The 2004 growth in construction
sector of 37% is largely attributed to the increasing opportunities
on this market. It is increasingly competitive though there are
certainly opportunities for newcomers in luxury apartments, guest
houses management and international sales areas.
The main laws regulating construction are the Law “On the Basics
of City Construction” dated 11 June 1999, and the Civil Code. Other
legislation regulating construction includes: legislative acts of a
general nature such as property, land, safety, environmental
protection, fire and sanitary regulations; construction rules, norms
and standards; and legislative acts regulating specific sectors
where structures or facilities are constructed. The construction
rules and standards of the USSR (GOST and SNIP) are still effective
in Azerbaijan.
According to Presidential Decree dated August 31, 2007 toughening
government control over the country’s construction sector
Ministry of Emergency situations ensures government control over
all stages of construction activities across the country, and stops
construction of the public and residential buildings unless the
construction regulations in force are observed. The Decree also
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