BAKU, Azerbaijan, November 5. Developers should consider market capacity, potential demand, financial resources and the market's ability to absorb the planned property supply when determining the phases of large real estate projects, Levent Kirazoglu, Investment Director at PASHA Real Estate Group, said on Thursday, Trend’s correspondent reports.
He made the remarks at the AIREX 2026 international real estate and investment exhibition in Baku.
He said one of the key factors is the size of the market and its ability to absorb the volume of real estate a developer plans to bring to market.
"Another important factor is the company's financial capacity and access to financing. A developer may have sufficient financial resources to begin construction of the entire project in a single phase. In other cases, the project may need to be divided into several phases in line with the company's financial capabilities.
Regardless of the approach chosen, each phase should be self-contained and function as a standalone project. In particular, it should have all the necessary infrastructure and conditions for people to live in or use the properties included in that phase," Kirazoglu said.
Speaking about the advantages of phased development, he noted that this approach helps gradually reduce financing requirements, including through revenue generated from sales in earlier phases.
It also allows developers to take the results of previous phases into account and make adjustments to subsequent stages of large projects, he added.
"Examples of such large-scale projects include hospitals, shopping centers and hotels," he said.
According to Kirazoglu, developing the residential component in phases allows developers to assess demand and take into account the characteristics of each specific market.
"In particular, developers can test demand for different layouts, ceiling heights and other property features," he added.
