Affording an Apartment in Tashkent: How Long Does It Take?
The housing market in Uzbekistan has experienced a significant shift in recent years, with a notable slowdown in the rise of housing prices. According to data from 2022 to 2024, the growth rate of housing prices has decreased from 23.6% to 6.2% nationwide. Specifically, in Tashkent, the price of an apartment is now equivalent to 11.2 years of rent payments as of January 1, 2025.
Between 2019 and 2021, Uzbekistan saw a surge in housing market activity, with a steady increase in real estate transactions. However, starting in 2022, the market entered a phase of stabilization, with less pronounced growth in transactions. In 2024, the number of registered home purchase and sale transactions declined by 5.8% compared to the previous year.
Looking ahead to 2025, efforts to support supply and demand in the housing market are expected to continue, with plans to construct multi-story buildings totaling 120,000 apartments. The state budget is set to allocate 15.5 trillion UZS for housing programs, while banks will provide an additional 10 trillion UZS.
Despite the slowdown in housing price growth, rental prices have also seen a modest increase, with the average rental price per square meter in Tashkent rising by only 1.2% from January 2022 to December 2024. The average rental price now stands at $8.2 per square meter, 11.5% lower than in 2023.
In terms of housing affordability, regions such as Karakalpakstan, Sirdarya, and Kashkadarya are relatively more affordable compared to Tashkent, Samarkand, and Navoi. As of 2024, the cost of an apartment in Tashkent is equivalent to 11.2 years of rent payments, indicating that renting may be a more favorable option compared to buying in recent years.
Additionally, the rental yield in Tashkent is higher than in some other capital cities, with a rental yield of 9% in USD terms as of December 2024. While this is higher than the average interest rate on foreign currency deposits, it is lower than the interest rate on UZS deposits converted into USD.
Overall, the housing market in Uzbekistan is experiencing a period of adjustment, with both housing prices and rental prices showing signs of stabilization and modest growth. Efforts to support the market and increase affordability are expected to continue in the coming years.
