Last year, the real estate market of Uzbekistan has significantly intensified. This was due to an increase in demand from the population as a result of an increase in the supply of mortgage loans and affordable housing programs, and a relative stabilization of the exchange rate.
In 2021, there were 14.5% more real estate transactions than in the previous year. A significant increase in transactions was observed in Namangan (over 42%), Bukhara (38%), Andijan (34%) and Samarkand (over 31%) regions. The number of contracts for the sale and purchase of housing in Tashkent (-0.7%) and Tashkent region (+1%) remained virtually unchanged, the Central Bank stated in its review of real estate market for the IV quarter of 2021.
Price dynamics
In the fourth quarter of 2021, there was a rapid increase in property prices. In particular, over the last three months of last year, housing prices increased by 5.1% in the country and by 4.2% in Tashkent.
The highest quarterly growth in housing prices was recorded in Bukhara (14.5%), Andijan (12.1%), Syrdarya (12.1%) and Samarkand (10.7%) regions.
At the end of 2021, the highest cost of housing in the regions was in the city of Tashkent (7 million 952.3 thousand soums per 1 sq. m.), Samarkand (5 million 745.1 thousand soums), Navoi (4 million 356.1 thousand soums) and Tashkent region (4 million 208.9 thousand soums), and the lowest prices – in Syrdarya (2 million 715.7 thousand soums), Khorezm (2 million 814.5 thousand soums) and the Republic of Karakalpakstan (2 million 879.9 thousand soums).
The impact of macroeconomic indicators on housing prices
The current macroeconomic conditions in the country have a direct impact on the situation with supply and demand in the real estate market.
According to CB experts, economic growth, growth in household incomes, in particular, a significant increase in cross-border transfers, relative stabilization of the soum exchange rate and slowing inflation have become key factors in increasing the number of real estate transactions and rising prices.
Previously, the Center for Economic Research and Reform informed on changes in demand in the real estate market of Uzbekistan. In terms of cities, the highest housing prices were recorded in Tashkent ($753 per square meter), Samarkand ($553) and Navoi ($418), and the lowest – in Nukus ($277), Karshi ($289) and Gulistan ($289).
