Uzbekistan’s real estate market sees 20.8% sales decline amid rising secondary housing prices

In August 2024, Uzbekistan’s real estate market experienced a slight contraction, indicating fluctuating market trends, as reported by the Center for Economic Research and Reforms. The month saw 22.2 thousand registered real estate transactions, a 3.5% drop from July’s 23,000.

Year-on-year, a significant 20.8% drop in housing transactions points to waning interest in home purchases.

Regional Dynamics

In August 2024, the largest regional declines in real estate transactions were recorded in Syrdarya (22.6%), Khorezm (13.2%), and Tashkent city (9.7%).

Year-on-year, property market activity also fell sharply in Navoi, Namangan, and Tashkent regions, with a drop of over 30% in each area.

Rental Market Analysis

In August 2024, Tashkent’s rental market stabilized with an average price of $8.3 per square meter, maintaining the same level as the previous month. This followed a decline of 0.6% in July and 1.2% in June, indicating that the market is showing signs of stability after two months of decline.

Seasonal fluctuations, such as increased demand for rental properties at the start of the school year, may explain this trend. Rental price disparities between districts remain steady, with Mirobod, Shaykhantohur, and Yakkasaroy maintaining higher prices at around $10 per square meter.

Meanwhile, districts like Bektemir and Sergeli remain attractive for budget-conscious renters, including students, with rental prices averaging $6 per square meter.

Compared to August last year, Tashkent’s rental prices saw a 7.3% decline, highlighting an overall downturn in the rental market segment. Significant decreases were noted in Yakkasaroy (14.8%), Yashnobod (13.3%), Shaykhantohur (11.5%), and Yunusobod (10%).

Secondary Real Estate Market Analysis

In August, prices in Uzbekistan's secondary housing market rose by 0.7%, with an average annual increase of 9.7% per square meter.

Significant price hikes were noted in Khorezm (21.4%), Surkhandarya (14.6%), Bukhara (13.4%), and Kashkadarya (13.3%) regions.

In Tashkent, after a slight decrease, the secondary housing market stabilized in August with prices rising by just 0.2%, bringing the average cost per square meter to $1,128. Prices remained steady in most districts, with minor increases in Mirobod (1.7%) and Olmazor (1.3%).

However, three districts saw a decrease in prices: Shaykhantohur (1.1%), Sergeli (0.9%), and Chilanzar (0.6%).

Over the past year, the average price of secondary housing in Tashkent rose by 4.2%.

Additional Insights

As the school year approaches, rental prices in Tashkent have slightly increased. Rental rates for moderately renovated apartments rose by 1.9% compared to July, while prices for fully renovated apartments increased by 0.3%.

Earlier this year, it was reported that overall real estate market transactions fell by 5.7% in the first half of 2024. This decline was most pronounced in Navoi region (26.5%), Tashkent city (13.8%), and Jizzakh region (10.6%).