At the end of 2023, the government of Azerbaijan officially approved the Master Plan for the Development of Baku until 2040, a large-scale urban planning strategy that will shape the future of the capital city for the next two decades. The plan covers the entire administrative territory of Baku, which spans approximately 212,000 hectares, and provides a roadmap for how the city will grow, where new infrastructure will be built, and how urban development will be managed.
The project was prepared by the internationally recognized German urban planning firm AS+P Albert Speer + Partner, working together with Azerbaijani authorities. According to official estimates, implementing the plan will require investments of approximately 93.6 billion AZN (around 55 billion USD), making it one of the largest urban development initiatives in the region.
One of the central goals of the Baku Master Plan 2040 is transforming the capital from a highly centralized city into a polycentric urban structure. Currently, most economic activity, offices, and services are concentrated in central districts. This creates congestion, heavy traffic, and pressure on infrastructure. The new strategy aims to distribute development across multiple urban hubs, creating several active centers instead of relying on a single downtown core.
Under this approach, development will gradually expand toward suburban and surrounding districts. Areas such as Alat, Mardakan, and other Absheron suburban zones are expected to become more important urban nodes connected by improved transportation networks. The goal is to reduce pressure on the historic city center, manage population growth more efficiently, and create new economic clusters outside traditional business districts.
The plan also includes major urban redevelopment initiatives. Many outdated residential areas are expected to undergo renovation or redevelopment as housing standards are upgraded. Improving residential infrastructure, modernizing apartment blocks, and developing new mixed-use districts will play a major role in the transformation of the city.
Transportation development is another major component of the strategy. The public transport network is expected to expand, improving connectivity between different parts of the city and surrounding regions. Better connections between Baku and nearby cities such as Sumgait will also be prioritized. New road infrastructure and transport corridors will support the movement of people and goods across the metropolitan region.
Environmental improvement is also a key focus of the plan. Several initiatives aim to restore polluted land and lakes, expand public green spaces, and create green corridors throughout the city. These projects are intended to improve urban living conditions and make Baku a more environmentally sustainable city.
Some of the projects already visible today are connected to the broader vision outlined in the Baku Master Plan 2040. Developments such as the Baku White City redevelopment project, the expansion of Central Park, new sections of the Baku Boulevard, and transportation modernization initiatives all reflect the long-term urban transformation strategy.
For real estate investors, this plan is particularly important because it provides insight into where future development and infrastructure investment will occur. Large-scale urban planning strategies often influence property prices by identifying areas where infrastructure improvements and economic activity will expand.
Several locations are expected to gain strategic importance over the coming years. The Alat region, which is already developing as a port and logistics hub, could become a major economic center. Suburban areas across the Absheron Peninsula may also see increased demand as transportation connections improve and new residential districts are developed.
For investors looking to buy apartments in Baku or buy real estate in Baku, understanding the direction of the Baku Master Plan 2040 can provide valuable insight into long-term property value growth. As infrastructure expands and new urban centers emerge, some areas of the city may experience significant real estate appreciation.
Overall, the Baku Master Plan represents a strategic effort to guide the capital’s growth in a more balanced and sustainable way. For property buyers, developers, and investors, the plan offers a clearer picture of how Baku’s urban landscape—and its real estate market—may evolve over the next two decades.
