CERR: Average cost of rental housing in Tashkent increased by 2.3% 

Sales for the month increased by 13%. The leaders were Namangan, Surkhandarya and Samarkand regions. At the same time, the peak of student demand occurs in August, and as a result of increased interest, activity in the capital’s housing purchase, sale and rental market continues to grow.

The Center for Economic Research and Reforms (CERR) analyzes the changes that have occurred in the real estate market.

In August, real estate sales increased by 12.8%, the number of registered purchase and sale transactions amounted to 28 thousand, which is almost 3 thousand more than the month before.

The greatest growth was noted in Namangan – by 33%, Surkhandarya – 27% and Samarkand regions – 25%.

Compared to August last year, the number of housing purchase and sale transactions increased by 6%.

Fig.1. Changes in the number of executed real estate purchase and sale contracts

Activity in the capital’s housing market has shown moderate growth over the past two months. Thus, sales volume in August increased by 10% and amounted to 7.5 thousand apartments.

The situation on the rental housing market in Tashkent

In August, the capital saw an increase in demand for apartment rentals, which is traditional at the end of summer.

Average rental cost per 1 sq. m. in Tashkent increased by 2% and amounted to $8.9.

The highest prices for rental housing were noted in Shaykhantakhur ($11.3 per 1 sq. m.), Yakkasaray ($11) and Mirabad ($11.5) districts of the capital.

At the same time, the highest growth rates of housing rentals were noted in Shaykhantakhur (+5.4%), Sergeli (+4.8%), Almazar (+4.5%) districts of the capital.

A decrease was noted only in one district of the capital – in Mirabad (by 1.0%).

Renting apartments in the capital remains most affordable in the Uchtepa ($7.1), Sergeli ($6.7) and Bektemir ($5.6) districts.

Compared to last year, the average rental price in Tashkent increased by 2.3%. Since the beginning of the year, the average rental price has decreased by almost 13.1%.

Secondary real estate market

For the first time at the beginning of the year, a decline in the cost of apartments was observed on the secondary real estate market. In August, the average price per square meter of housing decreased by 0.7%, while compared to last year, prices for secondary housing increased by 22%.

Fig.2. Changes in prices for secondary housing in Tashkent and regional administrative centers (in US dollars per 1 sq. m.)

On the contrary, in the capital, prices for secondary housing continued to grow in August and increased by 1.9% over the month compared to 1.5% in July.

The highest rates of growth in prices for secondary real estate were noted in Uchtepa – 3.6%, Chilanzar – 3% and Yakkasaray – 2.9% districts.

Compared to August last year, average prices for secondary housing in Tashkent increased by 31.6%.

For reference: Review of the real estate market of Uzbekistan is one of the areas of CERR research, which presents the dynamics of activity in both the primary and secondary real estate markets. The data is presented both for the reporting month and for the period from the beginning of the year to the reporting month. In addition, to track market dynamics, data for the same period last year is provided.