Baku City Guide

Azerbaijan's energy-rich capital wraps a UNESCO-listed walled Old City (Icherisheher) and the flame-shaped towers of its modern skyline around the Caspian Sea, anchoring roughly a quarter of the national population and the lion's share of GDP. The central districts of Nasimi, Yasamal, Narimanov and Nizami form the prime apartment market, where completed homes trade at around AZN 2,700 (roughly USD 1,600) per square metre, while off-plan stock in outer Surakhany, Binagadi and Khatai starts nearer AZN 1,100-2,600 per square metre. Demand is led by domestic buyers protecting capital against inflation alongside a growing pool of Gulf and regional investors, and rental rates have been the standout story, climbing close to 8% through end-2025 as tenant demand outpaced new supply. The waterfront Boulevard, White City regeneration zone and the Port Baku district concentrate the most liquid premium product. With prices projected to rise a measured 5-6% in 2026 and gross long-let yields in a realistic 6-9% band, Baku offers an accessible Eurasian entry point bridging European and Middle Eastern capital flows.