AZE.US
Baku plans to build up to 200,000 new apartments by 2040, according to the Azerbaijani government’s report on its activities in 2025, which was presented to the country’s parliament.
The large-scale construction program is part of the Baku Master Plan, which aims to expand housing supply and improve living standards in the capital as the city’s population continues to grow.
Real estate expert Elnur Farzaliyev says demand for housing in Baku is expected to remain strong in the coming years, with prices likely to continue rising at least until 2030.
One of the reasons is the ongoing demolition of old and unsafe residential buildings in the city. As these buildings are removed, the temporary reduction in available housing may put additional pressure on prices.
According to the Baku Master Plan, the average residential space per person in the capital is expected to increase from 20.8 square meters to 25 square meters by 2040.
Population growth projections suggest that Baku will need approximately 142,800 additional apartments over the next 15 years.
To accommodate the construction of new residential neighborhoods, authorities have allocated around 9,000 hectares of land, which could allow the development of up to 200,000 housing units.
What This Could Mean For Residents
Experts say the large-scale expansion of housing could significantly reshape Baku’s real estate market.
In the short term, rising demand and the demolition of older housing stock may continue to push prices upward.
However, once major construction projects begin delivering large numbers of new apartments – particularly after 2030 – increased supply could strengthen competition among developers.
That may lead to price stabilization and potentially slower growth in housing costs, especially in certain segments of the market.
New residential districts are also expected to include roads, schools, kindergartens and public spaces, which could change the city’s urban structure and create new neighborhoods across the capital.
In the long run, analysts say the planned expansion of housing could help make Baku’s real estate market more balanced and accessible for residents.