74.5% of citizens of Uzbekistan wishing to purchase housing experience difficulties in paying the down payment
Experts from the Institute for Macroeconomic and Regional Studies (IMRS) conducted a social survey to study the needs of the population in housing and the problems that arise in the process of making purchases.
Photo: Kun.uz
The survey, conducted in February of this year, covered 1,620 people, including 4 thematic and 5 questionnaire questions.
During the survey, 83% of respondents noted that they have a need to purchase housing, of which 96% require appropriate support (71% – urban and 29% – residents of rural areas).
The IMRS recalled that over the past six years, the country’s population has increased by 5.5 million people, and according to forecasts, by 2035 it will exceed 45 million people. With this in mind, 326,000 new residential buildings have been put into operation since 2017. In 2022, the “New Uzbekistan” program was launched to build 31 residential areas. In 2023, resources in the amount of 9 trillion soums will be sent to commercial banks for housing mortgages for 31,000 families.
The survey aroused serious interest among the residents of Tashkent. Thus, 41% of the respondents mentioned living in the capital, of which 48% of the participants live on a rental basis; 68% of those renting housing are employees of state organizations. According to the presidential decree, from April 1, 2020, when acquiring real estate in Tashkent and the Tashkent region, citizens of the country do not need to register at the place of permanent residence in these regions, this created equal opportunities for the population to buy housing in the capital.
74.5% of citizens wishing to purchase housing noted that they are experiencing difficulties with the payment of the down payment and interest on the loan. According to the IMRS, in the past 3 years, subsidies in the amount of 1.3 trillion soums have been provided to families in need of housing for initial contributions and interest payments, and in 2023 it is planned to allocate 1.6 trillion soums for these purposes.
While 25% of the population with no official income indicated difficulties in paying a monthly loan payment, for other participants this figure is 22%. In other words, citizens without official income are worried about monthly payments due to the uncertainty of future sources of income. At the same time, from May 1, mortgage loans will also be available to the population with an insufficient amount of official income. At the same time, citizens who have paid a larger down payment may be able to obtain a cheaper loan from a bank.
For information, in rural areas the need of the population for private houses is high. 61.4% of the surveyed residents of rural areas stated that they need housing due to the large number of family members living together, as well as small living space. In 2023, 10 thousand residents will receive loans in the amount of 1.5 trillion soums to expand or additionally build their own homes.
“In general, it can be noted that the development of favorable and flexible conditions for mortgage lending, the introduction of modern mechanisms and institutional reforms in the mortgage market serve to achieve the goals of meeting the needs of the population in housing in the face of growing demand for it,” the conclusion says.
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Experts from the Institute for Macroeconomic and Regional Studies (IMRS) conducted a social survey to understand the needs of the population regarding housing and the challenges they face during the purchase process. The survey, conducted in February 2021, covered 1,620 people and found that 83% of respondents require support to buy housing, with 71% being urban residents and 29% living in rural areas. In the past six years, Uzbekistan’s population has increased by 5.5 million people, and it is expected to exceed 45 million by 2035. To address this demand, 326,000 new residential buildings have been constructed since 2017, with plans to build 31 residential areas under the “New Uzbekistan” program launched in 2022.
The survey found that 74.5% of citizens looking to buy housing are struggling with down payment and loan interest payments. In response, subsidies totalling 1.3 trillion Uzbekistani soums have been provided to families in need of housing over the past three years, with plans to allocate 1.6 trillion soums in 2023. Among participants without an official income, 25% indicated difficulty in making monthly loan payments, while for others, this figure is 22%. To support those with lower official incomes, mortgage loans will be available from May 1, 2021.
The survey also found that the need for private housing in rural areas is high, with 61.4% of respondents in these areas citing cramped living conditions as the reason for needing additional housing. Plans are in place to provide loans of 1.5 trillion soums to 10,000 rural residents in 2023 to help them expand or build their homes. The introduction of favorable and flexible conditions for mortgage lending and modern mechanisms serves to meet the growing demand for housing and achieve the goal of providing stable residential options for the country’s residents.
