How the Khalif Index is calculated
At the start of every month we re-price the same basket of reference homes with our own price model and publish the result per district. This page states the method, and its limits.
Written by: Khalif Estate · Checked: 2026
Where the numbers come from
The index is computed with **Khalif Estate's own price model**, trained on **872,000+ listings** collected from the Azerbaijani market. It predicts a price from district, room count, area, floor, building type and location.
The model is ours: we collected the listings and trained it ourselves. Mean error is roughly **8–12%** of price.
The index used to be the median of our own catalogue — honest, but thin: three Baku districts had no figure at all and a rent index could not exist.
The reference basket
| Rooms | Area | Floor |
|---|---|---|
| 1 room | 45 m² | 5 / 12 |
| 2 rooms | 65 m² | 5 / 12 |
| 3 rooms | 90 m² | 5 / 12 |
| 4 rooms | 120 m² | 5 / 12 |
For each district those **four reference homes** are priced and their median is the district's figure. Price per square metre is computed per reference home (price ÷ area) and the median taken of those.
The basket is **the same every month**. That is the whole point of an index: a change between months is a change in the market, not a change in what happened to be listed with us.
Median, not average
One expensive point drags an average. The **median** — the middle value once sorted — does not move for it; with an even count we take the mean of the two middle values.
The range
The range shown is the model's **own confidence band** (about ±15% of the estimate), not the spread of the basket. On a single-room cut the basket holds one home, and a 'range' there would be a number pretending to be an interval.
Updates and archive
The calculation runs on the 1st of each month and is frozen for that month. Older months stay published at their own URLs, linked from every district page.
The month-over-month percentage compares the same calculation with the previous month; with no previous reading, no percentage is shown.
What the figure does not show
**Not the transaction price.** The model learned from asking prices; homes usually sell below them, and recorded sale prices are not public in Azerbaijan.
**Not the value of your home.** The index prices a reference home. Condition, title, view and the state of the building can separate two homes in the same district by 30%.
**Not our catalogue.** The index does not depend on how many homes we hold; our own listing count is shown separately.
Frequently asked questions
Where do the Khalif Index numbers come from?
From Khalif Estate's own price model, trained on 872,000+ listings collected from the Azerbaijani market. We collected the data and trained the model ourselves.
Which homes are priced?
The same four reference homes in every district: 1 room 45 m², 2 rooms 65 m², 3 rooms 90 m², 4 rooms 120 m², on the 5th floor of a 12-storey building. The basket never changes.
Is this the actual sale price?
No. The model learned from asking prices. Homes usually sell below them and sale prices are not public in Azerbaijan.
How accurate is the model?
Mean error is roughly 8–12% of price. The range shown on each page is the model's ±15% confidence band.
How often is it updated?
On the 1st of each month. Previous months stay available from each district page.
Figures are as of mid-2026 and taken from official sources. The law changes — confirm the current figure with a notary, a bank or the relevant authority before you commit to a transaction.
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