The number of real estate deals increased in most regions of Uzbekistan in the first quarter of 2024 compared to the same period of last year, except for Tashkent where the figure decreased, according to the Central Bank report (in Uzbek).
A total of 80.200 deals were signed during January-March, representing a slight (0.5%) decrease from 80,600 contracts. The slowdown, which started in the previous quarter, continued in Tashkent (minus 12%), Navoi region (minus 19.5%) and Karakalpakstan (minus 12%).
During 2023, 67,200 new apartments totalling 14.1 million square meters were commissioned, which is 6.8% less than in 2022, when 72,100 apartments, or 14.6 million square meters, were added to the market. Nevertheless, there number of adverts for new and used real estate continued growing in the first three months of the year.
According to the Central Bank, the current housing construction dynamics may indicate further increase of the number of offers because of optimization on the rental market and partial reduction of speculative demand.
Preliminary estimates show a decrease in demand for rental housing. At the same time, applications for mortgage, while slightly declining, remain at the average level compared to previous years
Right: Used housing price change, %, year-on-year. Blue: in Uzbek soums, red: in US dollars.
The growth of prices slowed down on the secondary (used) market. In March, prices increased by 29.6% in Uzbek soums and by 17.7% in US dollars compared to March 2023. To compare, in December, prices increased by 35.1% and 23% respectively.
In Tashkent, offer prices grew at the last year’s rates in January and February, but slightly lower in March. The price of used housing increased on average from UZS 10.98 million to 15.5 million per square meter, or 41.2% in a 12-month period.
New housing price dynamics, %, year-on-year. Blue: in Uzbek soums, red: in US dollars.
The new real estate growth remained high and fastened in Tashkent, Tashkent region and Fergana valley. Prices for new housing increased by 39% in Uzbek soums and 26.2% in US dollars year-on-year. The stimulation of the demand for more construction may lead to even higher prices, the Central Bank said.
To compare, in 2023 housing prices rose by 39.6% in soums and 26.9% in dollars.
Rent
Change of rental prices, dollar index, %, year-on-year. Blue: Uzbekistan, red: Tashkent.
Rental prices were low and stable in the first quarter, according to the Central Bank. However, current prices were adjusted compared to last year.
In Tashkent, price pressure is going down because of a lower demand and increased supply. House rental prices in Uzbekistan increased by 11.7% in soums and by 1.4% in dollars. Rental prices in the capital stayed the same in soums but decreased by more than 9% in dollars.
Land price
Average price of 100 sq. m of land in Tashkent, million UZS.
Prices for land plots grew in the first quarter at same levels as in the previous quarters. In one year’s term, the cost of 100 square meters of land increased by 37.5% (in dollars — 24.9%) and reached UZS 364 million compared to UZS 362 million at the end of 2023.
