Azerbaijan.US
Land prices across Baku and its surrounding areas continued to climb last year, with growth recorded in every district of the capital, according to market participants and valuation experts. While the pace of price increases varies by location, the overall trend points to sustained demand and limited supply.
The sharpest rise was observed in Binagadi, Sabunchu, and Yasamal districts, where land prices increased by up to 37 percent. More moderate growth – slightly above 7 percent – was recorded in Garadagh and Pirallahi districts, traditionally considered less central and less developed.
Property owners say land values in some areas have multiplied over just a few years. Plots that once sold for $600-1,000 per sot are now listed at $10,000-15,000, with prices in prime locations reaching significantly higher levels.
According to real estate agents, the strongest appreciation is seen in plots with official ownership documentation. By contrast, land designated for agricultural use has shown slower growth due to restrictions on development and changes in zoning.
One of the main drivers behind rising prices is the growing popularity of suburban living. In recent years, demand has surged for land in garden settlements and villages around Baku, where buyers increasingly build homes for permanent residence rather than seasonal use. As a result, prices in coastal and suburban areas are now approaching levels seen in central districts.
Infrastructure expectations are also playing a major role. Announcements related to new roads, metro extensions, and large-scale development projects often fuel price speculation. However, analysts warn that artificially inflated prices do not always translate into real demand, as buyer interest tends to weaken once prices move too far ahead of fundamentals.
Experts from Azerbaijan’s valuation community note that the gradual implementation of the Baku Master Plan 2040 is reinforcing long-term demand for land. Infrastructure upgrades, urban expansion, and new residential zones are expected to keep prices on an upward trajectory in 2026-2027, particularly in areas linked to domestic and international projects.
Another potential factor influencing the market is the anticipated formalization of undocumented residential properties. Specialists suggest that a legalization process – possibly through a property amnesty and changes in land designation – could bring additional plots into the formal market. This, in turn, may increase tax revenues while further reshaping land values.
Despite regional differences, the overall outlook suggests that land in and around Baku remains a sought-after asset, driven by urban growth, infrastructure development, and shifting lifestyle preferences.
