According to the calculations of CERR, along with the demand for real estate in Uzbekistan, car sales are growing for the second month in a row.
The Center for Economic Research and Reforms (CERR) regularly analyzes changes in demand in the real estate and automobile markets. The increased demand in these markets in January-March this year indicates a full recovery of economic activity in Uzbekistan.
In March of this year, the number of real estate contracts remained unchanged compared to February and amounted to 20.2 thousand, which is 34.4% more than in March last year.
In Tashkent, the number of concluded purchase and sale agreements amounted to 6.17 thousand, which is 0.9% less than in February of this year. At the same time, growth compared to the same period in 2020 amounted to 32.6%, which in turn also shows that the demand for real estate has returned to its long-term trend.
Regionally, the highest annual growth rates of real estate were observed in Navoi (18%) and Fergana (10.7%) regions and the Republic of Karakalpakstan (10.4%). It should be noted that this indicator decreased in Syrdarya (8.6%), Tashkent (8.1%) and Khorezm (8%) regions.
A gradual recovery of economic growth in the country and an increase in demand for real estate can traditionally become a mechanism for further price increases.
However, one of the measures that are now really capable of supporting the real estate market is the beginning of a large-scale housing program, which the government will allocate $11.5 trillion by the end of the year. In particular, this year it is planned to provide 45 thousand houses with affordable prices.
Fig.1. Index of changes in the number of executed contracts for the purchase and sale of real estate
Thus, the pace of urbanization is expected to accelerate due to an increase in affordable housing, which implies an improvement in business activity, demand and the quality of people’s life in general.
In addition, the government is implementing a set of measures aimed at supporting the construction industry as a driver of demand.
In March, the demand of the population in the car market for the second month in a row showed moderate growth, having increased by 7.7% compared to February of this year. Car sales grew by 47.4% compared to March 2020, when sales decreased by 34.6% compared to the previous month as a result of a lockdown in the republic.
Fig. 2. Index of change in the number of registered and re-registered vehicles
During the reporting period, the number of registered and re-registered cars increased rapidly in the Republic of Karakalpakstan (31.5%), Khorezm (30.5%), Jizzakh (23.5%) regions.
At the same time, a significant decrease was recorded in Bukhara (7.9%), Kashkadarya (7%) and Andijan (4.3%) regions.
* A detailed analysis of the real estate and automobile markets can be provided upon request to the Center for Economic Research and Reform.
Khalilullokh Khamidov, Chief Researcher, CERR
tel: (78) 150-02-02
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