This thesis focuses on developing a neighborhood in Baku, Azerbaijan, to enhance its adaptability to evolving environmental, social, and economic conditions. The objective is to create a vibrant urban environment with organized land use, affordable housing, and a healthy, community-oriented lifestyle. By analyzing urban regeneration processes and strategies in Turin, Italy, and Baku, Azerbaijan, the research identifies transferable approaches for balanced urban regeneration. The findings provide actionable recommendations for revitalizing the selected neighborhood in Baku, ensuring it remains appealing to current residents while also offering the potential to attract new ones. This city comparison provides valuable insights for achieving balanced urban development tailored to Baku’s unique context.