Housing market activity in Uzbekistan sees considerable decline in Q3 2024

From July to September, a total of 41,861 apartment purchase agreements were finalized, representing a decrease of 3,362 contracts (or 7.4%) compared to the same period in 2023.

Photo: Kun.uz

According to a recent analysis by specialists at the Institute for Macroeconomic and Regional Studies, Uzbekistan’s housing market saw a decline in activity during the third quarter of 2024. The study aimed to assess and forecast economic activity within the national real estate sector, highlighting a dip in the volume of residential property transactions.

From July to September, a total of 41,861 apartment purchase agreements were finalized, representing a decrease of 3,362 contracts (or 7.4%) compared to the same period in 2023.

Key factors impacting housing market activity, as identified in the analysis, include the volume of mortgage loans provided by commercial banks and household income levels. The study indicated a significant correlation between housing transactions and both mortgage lending volumes and disposable income. Between January 2021 and September 2024, a correlation coefficient of 0.81 was observed between real estate transactions and mortgage lending volume, while a 0.48 correlation coefficient was recorded between property transactions and disposable income levels.

Data from the Central Bank of Uzbekistan further showed that the volume of mortgage loans issued in the third quarter of 2024 was 4.84 trillion UZS, a decrease of 7.3% from the same quarter in 2023.