Azerbaijan’s reconstruction efforts to ease housing pressure, Minister says

Azerbaijan’s ongoing reconstruction and urban development efforts in the liberated territories are expected to ease long-standing social and housing pressures as displaced residents gradually return to their homeland after more than three decades, Economy Minister Mikayil Jabbarov said, AzerNEWS reports.

Speaking at the event titled “Transforming Informal Settlements and Slums for Housing Worldwide,” the minister emphasized that the redevelopment process in the liberated areas is creating new opportunities for sustainable urban planning and social integration.

“I am confident that extensive discussions are taking place within this forum regarding urban planning and reconstruction activities in the liberated territories. This process will remove a substantial part of the existing pressure, as many people are finally returning to their homes after more than 30 years,” Jabbarov stated.

The minister noted that the session focused on a broad range of issues, including healthcare access, education provision, and the challenges posed by the informal economy.

According to Jabbarov, Azerbaijan has also undertaken major reforms in recent years to simplify procedures for granting operational permits for apartment buildings. The country additionally introduced limited amnesty measures for private homes and informal settlements that meet basic urban planning standards.

However, he warned that the legalization of unauthorized construction must be approached carefully.

“Our experience has shown that legalization requires a cautious approach. While simple amnesties for illegal construction may temporarily solve certain social issues, they can also encourage further unauthorized development in the future,” he said.

Jabbarov stressed that uncontrolled construction creates long-term risks, including unsafe buildings, unplanned land use, pressure on agricultural and forest lands, water resources, and critical infrastructure zones.

The minister also highlighted the economic dimension of informal housing settlements, noting that governments frequently face a difficult balance between tackling the shadow economy and securing sustainable financing mechanisms.

“In Azerbaijan, we addressed this issue through a targeted reform program implemented between 2019 and 2025. Previously, many people operated outside the social protection system, transactions were conducted in cash, and the state received no revenue,” he explained.

As a result of the reforms, individuals were integrated into the country’s social security system, while revenues generated through social insurance contributions were partially redirected toward providing housing support for socially vulnerable citizens.

According to Jabbarov, the reforms led to a more than threefold increase in real revenues generated through the legalization of employment within affected communities, creating a significant financial source to address social welfare needs.