Despite rising startup activity, Azerbaijan’s venture capital market remains small

In the evening, only some of the windows are lit in one of the new residential towers in Baku White City. Many of the apartments remain empty — purchased as investments, protection against inflation or long-term assets. For many young residents of the Azerbaijani capital, such buildings have become symbols of a new urban reality: Baku is growing wealthier, but home ownership is becoming increasingly unattainable.

On a warm evening in central Baku, it is no longer unusual to see young professionals sipping botanical mocktails rather than traditional spirits. The shift, subtle at first, is becoming measurable in production data and corporate strategy, pointing to a broader reconfiguration of Azerbaijan’s beverage market.

Azerbaijan’s construction sector showed mixed dynamics in the first quarter of 2026: despite an increase in overall investment in the economy, key indicators within the sector point to an actual contraction in activity, particularly in housing.

Azerbaijan is seeking to integrate into the rapidly growing global medical tourism market, yet its starting position remains weaker than that of Turkey and less flexible than that of Georgia. The country possesses solvent domestic demand, modern medical infrastructure concentrated in Baku, and a favorable geographic location. However, it still lacks the key asset of successful medical tourism: international trust.