A comparison of living costs across the South Caucasus capitals, based on crowdsourced and statistical data from Numbeo and LivingCost for the first half of 2026, shows significant differences in housing, groceries, and utility expenses among Baku, Tbilisi, and Yerevan.

Yerevan remains the region’s most expensive city for long-term housing rentals, while Baku offers considerably more affordable accommodation. Grocery prices in Yerevan and Tbilisi are broadly similar, but Baku stands out thanks to lower prices for staple foods, particularly seasonal vegetables, bread, and eggs, The Caspian Post reports via LivingCost.

photo: The Caspian Post

The Azerbaijani capital is also the clear winner when it comes to utility costs. Domestic subsidies for natural gas and electricity keep household bills well below those in neighboring countries. Yerevan records the highest utility expenses in the region, especially during the winter heating season.

Monthly Grocery Costs

Analysts estimate that a single adult purchasing food exclusively from supermarkets and local markets, preparing meals at home, and excluding spending on alcohol, tobacco, and restaurants, would spend the following amounts per month in the first half of 2026:

Yerevan: approximately $220-240

Tbilisi: approximately $200-215

Baku: approximately $165-180

These estimates are based on a standard consumption basket providing around 2,400 calories per day and include milk and dairy products, bread, rice, potatoes, onions, eggs, local cheese, chicken and beef, fruits such as apples, bananas, and oranges, as well as vegetables including tomatoes and lettuce.

Why Is Baku Cheaper?

Baku benefits from lower prices for seasonal produce, bread, eggs, locally produced rice, and poultry thanks to Azerbaijan’s larger domestic agricultural sector. By contrast, supermarkets in Yerevan and Tbilisi rely more heavily on imported goods, which pushes up consumer prices.

Overall Cost of Living Ranking

As of 2026, Baku is the most affordable capital in the South Caucasus. Housing costs are roughly 30% lower than in Yerevan, while utility bills can be nearly half the price.

Tbilisi occupies the middle ground, with overall living costs about 10% lower than Yerevan’s. However, rents for larger apartments in central districts can rival those of the Armenian capital.

Yerevan remains the most expensive city in the region when all major living expenses are taken into account, including housing, groceries, and utilities.

For residents, expatriates, and digital nomads weighing relocation options, the figures suggest that Baku currently offers the most budget-friendly urban lifestyle in the South Caucasus, while Yerevan commands the highest overall cost of living.