CB says prices in Tashkent’s secondary real estate market rose up by 40% over a year

At the end of 2023, prices on the secondary residential real estate market in Tashkent increased by more than 40%, the Central Bank reported.

The report notes that the capital’s real estate market continues to expand significantly. This widens the price gap with other areas.

Last year, the cost of secondary housing increased from 10.5 million soums to 14.9 million soums per 1 square meter (in dollar terms – from $933 to $1212).

The leader in price growth on the secondary market was the Mirabad district – 37.1%. Housing prices have risen by more than 30% in the Yakkasaray, Chilanzar and Yunusabad districts. The worst price dynamics were observed in Sergeli (20.4%), Almazar (23%) and Yashnabad districts (23.5%).

Last year, rental prices in the capital fell by 9.3% in dollar terms. The decline was observed in all districts except Uchtepa and Sergeli, where demand remains relatively high.

“The supply, which was limited in previous periods, continues to gradually increase. This is likely due to an increase in purchases of residential real estate, some of which are specifically used for subsequent rentals,” the report says.

According to Central Bank estimates, with an increase in the housing stock by 1%, rental prices decrease by 0.44%. With the continued increase in supply in the rental housing market, the difference between the purchase price and the rental price is growing.

This leads to an increase in the payback period of real estate. If in 2022 the payback period for purchased housing, rented out, averaged 7.1 years, then in 2023 it increased to 8.2 years.

The cost of one hundred square meters (100 sq. m.) in Tashkent increased by 37.6% – from 263 million soums to 362 million soums. The rise in price of land plots is relatively the same across metropolitan areas.

The highest rates of growth in land prices were recorded in Yashnabad (32.7%) and Yunusabad districts (32.6%). Next come Sergeli, Chilanzar (30.4% each) and Yakkasaray districts (29.1%). Land prices increased the least in Almazar (9.3%) and Shaykhantakhur districts (16%).