The Center for Economic Research and Reforms (CERR) in its regular report analyzes the changes that have occurred in the real estate market.
Activity in the real estate market of Uzbekistan for 11 months increased by 9% compared to the same period last year. Average prices in the secondary housing market have risen by 15.8%, and in Tashkent, in particular, by 22.7%. At the same time, the situation in the apartment rental market is returning to the previous level of equilibrium.
In November, the real estate market of Uzbekistan again attracted buyers after a slight decline in October. During the month, the number of real estate purchase and sale transactions in the republic increased by 7.8% compared to the previous month.
The highest growth rates of housing sales were recorded in Khorezm (by 38%) and Navoi (by 24%) regions and in the Republic of Karakalpakstan by 23%.
Since the beginning of the year, the growth in housing sales compared to the same period last year amounted to 9%. At the same time, compared to November last year, the number of transactions in the real estate market increased by 8.1%.
Fig.1. Changes in the number of executed contracts for the purchase and sale of real estate
Experts note that activity in the real estate market, and hence demand, is stimulated by an expanded program to create additional amenities for the population when using mortgage loans, which started in Uzbekistan on November 1, 2022.
In particular, it is allowed to allocate mortgage loans for housing without renovations in the "turnkey" format. Loans can also be obtained for the payment of subsidies to compensate part of the down payment and part of the mortgage interest. In addition, the validity period of notifications on the allocation of subsidies provided within the target parameters for the allocation of mortgage loans in 2021 has been extended until the end of the year.
In the last month of autumn, a decline in rental prices was noted in the capital. Compared to October, in November, prices for rental housing in Tashkent decreased by 5.8%. At the same time, since the beginning of the year, the average rental price in the capital has increased by more than 35% and amounted to almost $10 per 1 sq. m.
The highest rental price per 1 sq. m. is noted in Shaikhantakhur ($13.2), Mirabad ($12.3) and Yakkasarai ($12.2) districts.
Relatively low rental prices were recorded in Uchtepa ($8.1), Sergeli ($7.2) and Bektemir ($6) districts.
In November, the average cost of housing in the secondary market increased by 3.9% (in July – 2.5%, in August – 0.5%, in September – 1.1%, in October – 2.3%).
Since the beginning of the year, there has been a rapid growth in secondary housing. So, the average cost per 1 sq. m. has increased by 15.8%.
The most significant increase in prices on the secondary real estate market was in Tashkent (by 22.9%) and Navoi (by 22%) regions and in Tashkent city by 22.7%.
Secondary housing in Tashkent for the month rose by 2.4% (in July – 2.4%, August – 1.4%, September – 1.7%, October – 4.6%). The largest price increase was recorded in Bektemir (12%), Mirabad (5%) and Yunusabad (4%) districts of Tashkent.
Fig.2. Changes in prices for secondary housing in Tashkent and the administrative centers of the regions
Darya Miroshnikova, CERR
Public Relations Service of the CERR
tel: (78) 150 02 02 (417)
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