Tashkent’s Secondary Real Estate Market Sees 40% Price Increase in One Year
The cost of land and housing in the capital city of Uzbekistan, Tashkent, has seen a significant increase in recent times. According to reports from the Central Bank, the prices on the secondary residential real estate market in Tashkent have increased by more than 40% by the end of 2023.
The rise in prices is not limited to housing alone, as the cost of one hundred square meters of land in the capital has also increased by a third, amounting to 362 million soums. This marks a 37.6% increase from the previous price of 263 million soums.
The report also highlights the widening gap in prices between different areas of the city, with the Mirabad district experiencing the highest price growth at 37.1%. Other districts such as Yakkasaray, Chilanzar, and Yunusabad have also seen housing prices rise by more than 30%. On the other hand, the worst price dynamics were observed in Sergeli, Almazar, and Yashnabad districts.
While housing prices have been steadily increasing, rental prices in the capital have seen a decline of 9.3% in dollar terms. However, this decline was not observed in all districts, with Uchtepa and Sergeli still experiencing high demand for rentals.
The increase in housing supply is seen as a contributing factor to the decline in rental prices. This increase in supply has led to a decrease in rental prices, with the payback period for purchased housing, rented out, averaging 8.2 years in 2023, compared to 7.1 years in 2022.
The report also notes that the rise in land prices is relatively similar across metropolitan areas, with the highest rates of growth recorded in Yashnabad and Yunusabad districts. However, land prices increased the least in Almazar and Shaykhantakhur districts.
Overall, the real estate market in Tashkent is experiencing significant changes, with prices for both housing and land on the rise. As the housing supply continues to increase, it will be important to monitor how this affects rental prices and the overall real estate market in the capital.
