In the 3rd quarter of 2022, the growing dynamics of the real estate market was maintained due to the increase in the demand for residential areas by non-residents, the growth of secondary income of the population, and seasonal factors, the Central Bank said in its statement.
Activity in the market and the number of contracts concluded for the sale of real estate in all regions of the republic have increased. In July-September of this year, 79,900 contracts were signed, which increased by 20% compared to the same period last year.
The high rate is mainly due to contracts concluded in August and September. Reportedly, the highest growth rates accounted for Khorezm (41%), Navoi (39%), Jizzakh (32%) and Kashkadarya (30%) regions. During this period, 18% more contracts were signed in the city of Tashkent compared to the same period last year.
In addition, according to the results of the most searched queries in search engines, market activity increased significantly during this period. At the same time, interest in buying and renting real estate in the country by non-residents from certain countries, especially Russia, has increased significantly since the beginning of last quarter, which will put pressure on the additional demand and price environment not only in the current quarter, but also for the next period.
Supply remains moderately stable, partially balancing the high demand generated in the market.
Rental fee
In August-September, there was an increase in rental prices for apartments. In July, rental prices across the country temporarily decreased (during the period of labor holidays and the end of the academic year), decreased by 2.5% in soum terms (2.2% in dollar terms). A significant increase of 17% was observed in the following two months (8.6% in August and 7.7% in September, respectively).
In Tashkent city, Samarkand, Fergana and Tashkent regions, the rent for 1 square meter has increased significantly. The increase in rents currently felt by the population is reflected in inflationary expectations.
According to the results of the surveys conducted by the Central Bank, the percentage of respondents who stated that the growth of housing and rent payments is maintained as one of the main factors of price growth in the current period and during the next 12 months.
Secondary real estate market
It increased by 5.2% in the third quarter, and by 18.1% since the beginning of the year.
Growth is observed in all regions except Surkhandarya, Andijan and Tashkent regions. The decrease in prices in these regions can be explained by the fact that relatively lower activity was observed in comparison with the rest of the regions.
At the same time, the number of signed contracts increased by 6.2% in Tashkent region, by 12% in Surkhandarya region, and by more than 15% in all other regions.
Although the price growth in the secondary real estate market slowed down in the summer months, a significant increase was observed in September. As a result of the influx of foreign tourists, the increase in demand, the secondary income of the population, in particular, the increase in cross-border remittances, as well as seasonal factors related to the increase in agricultural cash receipts have been the basis for the increase in prices.
The most growth of secondary real estate market prices in the III quarter was recorded in Tashkent city (5.0%), Navoi (7.8%) and Bukhara (3.3%) regions.
The above-mentioned factors also affected the primary market, and in September residential prices increased by 2.5% in total.
In September, prices increased in the primary market in the Fergana Valley, Tashkent, Syrdarya and Navoi regions. In Jizzakh, Bukhara and Khorezm regions, a slight decrease in prices was observed.
In general, the increasing dynamics of prices in the market remains. A number of additional measures are being taken by the state for the primary and secondary sectors of real estate in order to increase the level of provision of housing for all strata of the population, the Central Bank said in its review.
