The market for short-term rentals in Baku has expanded significantly over the past decade. As Azerbaijan’s capital continues to attract tourists, business travelers, and international visitors, many property owners have started offering apartments through platforms such as Airbnb and other short-term rental services.
Several factors contribute to the strong demand for short-term accommodation. Baku hosts numerous international events, including sporting competitions, business conferences, and cultural festivals. Additionally, the city’s historic Old City, modern architecture, and Caspian Sea coastline attract tourists from Europe, the Middle East, and Asia throughout the year.
For property investors, short-term rentals can generate higher potential income than traditional long-term leasing. While long-term rental yields in Baku often range between 5% and 7% annually, short-term rentals in prime locations can sometimes exceed these returns when occupancy rates are high.
Location plays a major role in profitability. Apartments located near Nizami Street, Fountain Square, the Baku Boulevard, and Icherisheher (Old City) are particularly attractive for tourists. Properties in these areas can command significantly higher nightly rates compared to apartments in more residential districts.
Typical Airbnb prices in central Baku vary depending on apartment size and quality. A one-bedroom apartment in the city center can often be rented for 40–90 USD per night, while larger or newly renovated apartments in premium locations may reach 100–150 USD per night during peak tourist seasons.
However, investors should also consider operational factors when planning short-term rentals. These include property management, cleaning services, maintenance, and platform fees. Successful Airbnb hosts often invest in professional photography, modern interior design, and reliable guest services to maintain high ratings and occupancy levels.
Despite these considerations, short-term rentals remain one of the most promising strategies for maximizing real estate investment returns in Baku. With the city’s tourism sector continuing to grow and international connectivity improving, demand for short-term accommodation is expected to remain strong in the coming years.
