Baku's Next Chapter Is Taking Shape

A city once shaped by the fortunes of oil is now presenting a different vision of its future, one in which the quality of everyday life matters as much as the scale of construction. This week, Azerbaijan hosted its first International Real Estate Exhibition, AIREX 2026, bringing developers, architects and investors to Baku to showcase projects transforming the capital and other parts of the country. Held from 4 to 6 November, the exhibition revealed ambitions extending beyond luxury apartments and landmark towers. From new residential districts to digitally managed communities, the developments reflect a growing interest in how buildings connect with the wider city. For Baku, whose skyline already offers a striking contrast between historic architecture and contemporary towers, the next chapter appears increasingly concerned with what happens at street level.

Among the projects attracting attention was Caspi Yards, a proposed 13-hectare development featuring 11 residential buildings, four commercial buildings and a 44-storey landmark known as Victory Tower. Its plans bring homes together with educational, healthcare, commercial and leisure facilities, while a proposed direct metro entrance would connect the neighbourhood to the wider city. The concept reflects an increasingly familiar ambition in international property development: creating places where residents can meet many of their daily needs without travelling across the city. Elsewhere, Baku White City continues to demonstrate the possibilities of urban regeneration. Developed on land historically associated with the oil industry, the project represents an attempt to transform an industrial legacy into a contemporary urban district.

Yet Baku's development story extends beyond the capital's most prominent projects. Azerbaijan's State Housing Development Agency has launched 20 housing projects, including developments in Karabakh and other regions. Eleven affordable housing projects have been completed, according to figures presented at the exhibition, with additional complexes under construction or in design. Schools, kindergartens and healthcare facilities form part of the wider planning approach. Technology is also becoming more prominent. At Sea Breeze, Digital Residence is developing services that combine intelligent building management with digital tools intended to improve residents' experience. Developers are additionally exploring how artificial intelligence can accelerate the visualisation of architectural ideas, potentially making early design decisions faster and less expensive.

The developments offer an intriguing picture of a property market seeking to define itself through more than investment value or architectural spectacle. Baku's modern towers remain powerful symbols of the city's transformation, but the exhibition suggested that the next measure of progress may be found in the spaces between them: accessible transport, useful public amenities, comfortable homes and neighbourhoods capable of supporting everyday life. The involvement of international developers and architectural practices also places Azerbaijan within a wider conversation about urban regeneration and sustainable growth. Whether the projects fulfil their ambitions will depend on delivery, affordability and the experience of the people who eventually inhabit them. For now, AIREX 2026 has offered a revealing glimpse of how Azerbaijan hopes its cities will look and function in the years ahead.