Experts of the Macroeconomic and Territorial Research Institute (MTRI) have analyzed the level of profitability of housing rental prices in Tashkent.

Income from housing investment is divided into two parts, the gain (loss) from housing price appreciation (loss) and housing rental income.

According to the calculation results, in August 2023, the highest annual increase in the average housing price was recorded in Yunusabad (37.1%) and Mirzo Ulugbek (35.7%), while the relatively lower increase was recorded in Sergeli (27.8%) and Almazar (24.4%) districts. In addition, in terms of income from renting out the houses of real estate owners (relative to the value of the house), the highest income is received in the districts of Mirzo Ulugbek (12%) and Chilanzar (10.6%), while relatively lower income is received in Sergeli (8.5%) and Uchtepa (8.2%) districts.

According to MTRI experts, if Tashkent city (10%) had been added to the rating of the average rental income for 58 countries published by the Global Property Guide in September 2023, it would have taken the 2nd place after Georgia (12.4%). In this ranking, the Republic of South Africa (9.9%), Ireland (8.1%), Puerto Rico (8.1%), Latvia (7.8%), Colombia (7.7%), Morocco (7.6%), Indonesia (7.6%) and Lithuania (6.7%) followed Georgia.

2- and 3-bedroom dwellings are more promising in terms of return on investment when the combined effects of apartment price changes and rental income in high-rise buildings are assessed by district and town. The income from the rent of such houses is on average 10 percent.

During the same period, the weighted average interest rate of foreign currency bank deposits with a maturity of more than one year increased from 4.3% in August 2022 to 5.5% in August 2023.

In the context of rising housing prices, the attractiveness of rental income will further encourage the allocation of savings to real estate. This may further increase the demand for housing and increase their price.