Real estate market of Uzbekistan — CERR overview

Real estate market of Uzbekistan — CERR overview

The Center for Economic Research and Reforms (CERR) in its regular report analyzes the changes that have occurred in the real estate market.

In January, the demand for the purchase of real estate increased among Uzbeks. At the same time, the cost of housing in the secondary market increased by 1%.

In January, 18 thousand real estate purchase and sale transactions were registered, which is 19.7% more than in December 2022.

The highest growth rates were recorded in the Republic of Karakalpakstan – by 3 times, Namangan – by 78.3% and Syrdarya regions – 68%.

Compared to January 2022, the number of home purchase and sale transactions increased by 2.7%.

Experts draw attention to the fact that the main instrument for supporting the real estate market is preferential and subsidized mortgages, as well as stimulating state programs. In particular, in December last year, President Shavkat Mirziyoyev announced the launch of the mortgage program "My First Home" for young families in need on more acceptable terms. The program starts in the Tashkent region.

According to the forecast of the Central Bank, high rates of mortgage lending will be the main driver of the growth of the real estate market in Uzbekistan in 2023.

By the end of 2022, the volume of mortgage loans issued by banks to the population increased 1.5 times – from 9.8 to 14.4 trillion. soums. At the same time, the growth of the primary and secondary market also amounted to 1.5 times – from 7.4 to 10.8 trillion. soums, and from 2.4 to 3.6 trillion. soums, respectively.

Changes in prices for rental housing in Tashkent

In January, the average rental price in the capital remained virtually unchanged and amounted to $10.1 per 1 sq.m. with a slight decline by 1.4% by December 2022.

The highest rental cost was noted in Shaikhantakhur ($15.7), Yakkasaray ($11.8) and Mirabad ($12.2) districts of the capital.

Relatively low rental prices were recorded in Uchtepa ($8), Sergeli ($6.9) and Bektemir ($6) districts.

At the same time, by the corresponding period of 2022, the average rental price in Tashkent increased by almost 25%. The highest growth rates for rental housing since January last year were recorded in Shaikhantakhur (56.7%), Sergeli (29.9%) and Chilanzar (25.8%) districts.

Secondary real estate market

According to calculations, in the republic in January, the growth of the average cost of housing for 1 sq. m. m in the secondary market was 0.9% for the month, while since January 2022 it has increased by 20.2%.

Since the beginning of the year, a significant increase in the cost of housing was observed in Navoi – 29.3% and Ferghana regions – 29%, in Tashkent – by 28.3%.

In the secondary market in Tashkent, the price increase in January amounted to 1.9% per month. The highest growth rates were recorded in Yunusabad (2.9%), Almazar (2.8%) and Shaikhontakhur (2.7%) districts.

Since January 2022, average prices for secondary housing in Tashkent have increased by 28.3%.

For reference: The overview of the real estate market of Uzbekistan is one of the research areas of the CERR, which presents the dynamics of sales of residential real estate, fluctuations in rental prices and the dynamics of sales in the secondary real estate market.

Since January of this year, the method of clearing data from contradictory points has been improved. Due to the receipt of updated information, the estimate for December has been revised.

Daria Miroshnikova, CERR

Jaloliddin Usmonov, CERR

Public Relations Service of the CERR

tel: (78) 150 02 02 (417)

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