Hagag Brothers Invest in Baku Real Estate: Apartment Prices Start at $150,000
The Hagag Group has signed memoranda of understanding for two large-scale real estate projects in Baku, Azerbaijan. The joint venture with a local partner aims to develop approximately 3,500 housing units within the Sea Breeze Resort area.
The Hagag Group has signed memoranda of understanding for real estate deals in Baku, the capital of Azerbaijan, according to a report filed with the stock exchange. As part of the deal, which is subject to due diligence to be conducted in the coming month, the group plans to partner with a local entity (holding approximately 20%) to develop two large-scale projects in the Sea Breeze Resort area. The land cost for the deal could reach up to 93 million dollars, with the majority to be funded by projected proceeds from apartment sales.
The Sea Breeze Resort area is situated along the Caspian Sea. The developer, Sea Breeze Resort and Residences, which markets vacation properties in Azerbaijan, served as a sponsor for Maccabi Netanya—the hometown of the Hagag brothers—during the previous season.
The development stretches along a 23 km coastline. Sea Breeze is being built as a modern city, integrating luxury residential neighborhoods, hotels, international brands, and commercial hubs alongside artificial islands. Both projects are located on the beachfront and are expected to comprise approximately 3,500 housing units across a total built-up area of 358,000 square meters: 2,475 units in the first project and 1,000 in the second.
The Hagag Group’s entry into Azerbaijan follows the long-standing strategic partnership between Israel and Azerbaijan, which has flourished since 1992 across security, energy, trade, and technology sectors.
Sea Breeze is being developed from the ground up with comprehensive urban planning. Tens of thousands of residents already inhabit the complex, and the long-term master plan envisions an expansion to approximately 18,500 dunams. The area includes educational, medical, sports, and leisure facilities, as well as a casino complex currently under construction.
The Hagag Group reported significant demand for both purchase and rental from local residents and international tourists. "The apartments are particularly suitable for Israeli investors due to their low absolute price (starting from approximately 150,000 dollars) and high returns, especially given the accelerated development in the region," the company stated. For the Israeli public, the destination is highly accessible, with over 20 weekly flights and a flight time of only three hours.
Joint CEOs and controlling shareholders, brothers Tzahi and Ido Hagag, stated:
"We see the Baku deal as a significant opportunity and a key pillar of our growth strategy. We have identified a real estate market in a massive development momentum that will create high demand. We believe the combination of development pace, existing demand, current low price point, and expected returns creates significant potential for continued growth and appreciation in the coming years."
