The Center for Economic Research and Reform has analyzed how the real estate and motor vehicle market responded to the coronavirus crisis in Uzbekistan in March 2021. According to experts, along with the demand for real estate in Uzbekistan, car sales are growing for the second month in a row.
In March, the number of real estate contracts concluded in the country remained unchanged compared to February and amounted to 20.2 thousand, which is 34.4% more than in March last year.
In Tashkent, which accounts for more than 30% of the real estate market, the number of concluded sales amounted to 6.17 thousand, which is 0.9% less than in February this year. At the same time, growth compared to the same period of 2020 was 32.6%, which in turn shows that the demand for real estate has returned to its long-term trend.
In the regional context, the highest annual growth rates of real estate purchases were observed in Navoi (18%) and Fergana (10.7%) regions, as well as in the Republic of Karakalpakstan (10.4%). Noteworthy is that this indicator decreased in Syrdarya (8.6%), Tashkent (8.1%) and Khorezm (8%) regions.
A gradual recovery of economic growth in the country and the increase in real estate demand can lead to further price increases.
The government plans to allocate 11.5 trillion soums ($1.1 billion) by the end of the year to support the real estate market, which is 4 times more than last year, through a large residential housing program. In particular, this year it is planned to provide 45 thousand families with affordable housing.
Thus, the pace of urbanization is expected to accelerate through an increase in housing affordability, which implies an improvement in business activity, demand, and the quality of life of people as a whole.
In March, population demand in the car market for the second month in a row showed moderate growth – an increase of 7.7% compared to February this year. Car sales grew by 47.4% compared to March 2020, when they decreased as a result of the lockdown.
During the reporting period, the number of registered and re-registered cars increased at a high pace in the Republic of Karakalpakstan (31.5%), Khorezm (30.5%) and Jizzakh (23.5%) regions. At the same time, a significant decrease was recorded in Bukhara (7.9%), Kashkadarya (7%) and Andijan (4.3%) regions.
The automotive sector is an effective lever for rapidly stimulating economic growth in the country, experts say.