Cost of living in Baku, prices and what it is like to live for an Expat, quality of life / hardship, and compare cost of living for Expatriates as at July 2023.

What is it like to live in Baku?

Baku: Baku is the capital, the largest city, and the largest port of Azerbaijan and all the Caucasus.

Economy: The basis of Baku's economy is petroleum. The existence of petroleum has been known since the 8th century. The World War II Battle of Stalingrad was fought to determine who would have control of the Baku oil fields. Fifty years before the battle, Baku produced half of the world's oil supply. Currently the oil economy of Baku is undergoing a resurgence.

Inflation: 12.2% for Azerbaijan as at July 2023.

Baku Population: 4.3 Million (Metro) (2022 est.)

Expat Life: Azerbaijanis are very hospitable. While Islamic values prevail, adherence to Islam is not strict, and conservative Western clothing is acceptable. At religious sites and in the more traditional and rural areas clothing should be modest, and women are expected to cover their heads, shoulders and arms. While alcohol is freely available, drinking to excess and public drunkenness is not socially acceptable. Business meetings are generally formal and professional titles are preferred. Business dinners often include toasts and visitors should be prepared to make a short speech or toast in response to one from their hosts. The safety risk for expatriates in Azerbaijan is medium overall, but high for the Armenian border areas and Nagorno-Karabakh. Risks include generalised petty street crime, tension between Azerbaijan and neighbouring Armenia over the disputed territory of Nagorno-Karabakh, as well as the risk of terrorist attacks. Other risks include the poor road conditions outside of Baku.

Health Care: Health care facilities outside Baku are very limited. For expatriates serious illness or injury may require evacuation to Turkey or Western Europe.

For other areas within the country see Azerbaijan.

Cost Of Living

What is the cost of living in Baku?

The cost of living for expatriates in Baku as at July 2023 is low in comparison to other places in the world, with an overall Cost of Living Index (COLI), for all 13 basket groups, of 54.8 (New York =100). We have collected prices for the same items, world wide, based on Expat spending norms, in or closest to the location, and converted them to $USD so that we can compare the cost of 13 different baskets in 780 global locations. For each basket, compared to New York, the equivalent cost in Baku is as follows:

1) Alcohol and/or Tobacco: Cost is high for items such as beer, spirits, wine and tobacco related products such as cigarettes. A basket costing USD$1,000 in New York costs USD$840. Average price in a store for a midrange bottle of wine is USD$9.18, domestic/local beer (500ml) USD$1.91, imported/international beer (330ml) USD$3.28 and a pack of 20 cigarettes is USD$3.82.

2) Clothing: Cost is very high for items such as business, casual and children's clothing and footwear. A basket costing USD$1,000 in New York costs USD$1090. Average price for an international brand of mens jeans is USD$54, a quality international brand of running shoes USD$108, mens leather shoes suitable for office wear USD$71 while a medium size international summer dress from a global chain store is USD$45.

3) Communication: Cost is very low for various communication costs such as home telephone rental, internet subscription, mobile service provider tariff and data costs. A basket costing USD$200 in New York costs USD$82. Average price for a monthly standard plan internet subscription is USD$15, while the benchmark mobile tariff is USD$14.71 per minute.

4) Education: Cost is low for items such as creche / pre-school fees, primary school fees, high school fees and tertiary study fees. A basket costing USD$30,000 in New York costs USD$19200. Average annual private international school fee (excluding extras) USD$12,457 for Primary School, and USD$13,862 for High School.

5) Furniture & Appliances: Cost is average for items such as dining table and chairs, home entertainment, kitchen appliances, and sofas. A basket costing USD$2,500 in New York costs USD$2075. Average price for a 6kg front loader Washing Machine is USD$697, and USD$599 for a 46+'' LED UHD TV.

6) Groceries: Cost is average for items such as consumables, cleaning products, dairy, fresh fruit & vegetables, general food products, snacks, soft drinks. A basket costing USD$1,000 in New York costs USD$620. Average grocery prices in a major international retail store for 1 kg apples is USD$0.72, 1 kg oranges USD$0.87, 1 head lettuce USD$0.68, 1 kg potatos USD$0.46, 1 kg boneless, skinless, chicken breast USD$2.65, 1 kg cheddar cheese USD$3.00, 1 dozen large eggs USD$2.03, 500g loaf white bread USD$0.53, 1 L full cream milk USD$6.83, and 1.5 L water USD$0.75.

7) Healthcare: Cost is average for general heath care, doctor visits, hospital stays, non-prescription medicine, and medical insurance. A basket costing USD$1,000 in New York costs USD$740. Average healthcare cost for a private practice Doctor visit for an uninsured patient is USD$60, and a private hospital stay per day including nursing care, medications, diagnostic tests, food, and related costs is USD$1,835.

8) Household Accommodation: Cost is low for items such as apartment rent, house rent, property purchase, mortgage rate, and utilities. A basket costing USD$5,000 in New York costs USD$1400. Average expatriate house / apartment rent for a secure upmarket unfurnished apartment (3 bedrooms) is USD$2,055 in a central location, and USD$1,086 in a suburban location, per month, excluding utilities.

9) Miscellaneous: Cost is average for items such as dry cleaning, linen, magazines, newspapers, office supplies, and postage stamps. A basket costing USD$500 in New York costs USD$350. Average price for dry cleaning (1 mens 2 pc suit) is USD$6.80, while an international newspaper is USD$2.09.

10) Personal Care: Cost is very high for items such as cosmetics, hair care, and toiletries. A basket costing USD$500 in New York costs USD$520. Average cost for a mens haircut and blow dry is USD$41, while a womens hair colour, cut and blow dry - medium length is USD$207.

11) Recreation & Culture: Cost is high for items such as books, cinema, sport and theatre tickets. A basket costing USD$500 in New York costs USD$375. Average price for a latest release international cinema ticket (average of on and off peak where applicable) for one adult is USD$6.12, and an international fitness, recreation or sports club membership cost for one adult is USD$47 per month.

12) Restaurants Meals Out and Hotels: Cost is average for items such as hotel daily room rates, meals and beverages in a restaurant, and take away food and beverages. A basket costing USD$1,000 in New York costs USD$460. Average cappuccino price (regular, medium) is USD$4.03, coke/pepsi (330ml) USD$0.74, burger meal (international franchise or similar) USD$8.41, and a mid-range international restaurant meal for 2 USD$38.23.

13) Transport: Cost is low for items such as fuel (petrol/gasoline), car hire, public transport, vehicle purchase and maintenance. A basket costing USD$1,000 in New York costs USD$510. Average average price over the last year for highest available octane petrol / gasoline (1L) is USD$2.49, while the benchmark car sedan purchase price including taxes/duties for a compact / small / economy vehicle (1.4 L) is USD$20,588.

How does the cost of living in Baku compare?

Baku is -14.9% cheaper than Houston TX for groceries, 23.2% more expensive for household costs than Kuala Lumpur, and -30% cheaper for transport costs than Dubai.

What is the quality of life / hardship in Baku?

Baku is ranked as a high degree of hardship location.The hardship premium for Baku for an expat from Perth, is for example 20%, i.e. host location (Baku) premium of 30% minus home (Perth) location premium of 10%.

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