Declining Investment Returns on Multi-Storey Housing in Tashkent
According to experts from the Institute for Macroeconomic and Regional Studies, the profitability of investments in multi-storey housing in Tashkent has decreased significantly as of January 2025. Real estate investment has long been seen as a reliable source of financial stability and long-term income, with rental income and capital gains being the main sources of profit for investors.
The analysis shows that the profitability of investments in multi-storey housing in Tashkent has dropped to 7.6% in January 2025, compared to an average of 32.4% in February 2024. The profitability varied depending on the location and the number of rooms in the apartment.
One-room apartments in Mirabad saw a decrease to -1.7% profitability, while in Bektemir it increased to 54.3%. Two-room apartments in Uchtepa had a profitability of 2.6%, while in Yakkasaray it was 15.1%. Three-room apartments in Bektemir saw a decrease to -5.5%, while in Yakkasaray it was 10.4%. Four-room apartments in Bektemir decreased to -7.3%, while in Chilanzar it increased to 16.5%.
The analysis also looked at the potential return from changes in housing and rental prices, which decreased significantly in districts like Shaykhontohur and Yunusabad. The average annual rental yield varied in different districts, with Mirabad at 10%, Mirzo Ulugbek at 9.9%, and Shaykhontohur at 9.8%.
Overall, the investment attractiveness of one- and two-room apartments, traditionally seen as the most profitable, is declining. The profitability of three- and four-room apartments has also decreased sharply. This analysis highlights the importance of staying informed about market changes and adapting investment strategies accordingly.
