Investment returns on multi-storey housing declining in Tashkent

The core value of such investments lies in two main sources of profit: rental income from leasing the property and capital gains (or losses) due to fluctuations in property value over time.

Together, these sources not only generate income but also provide investors with flexibility to adapt to market changes.

As of January 2025, the profitability of investments in multi-storey housing in Tashkent dropped significantly to 7.6%, compared to an average of 32.4% in February 2024.

During this period, investment profitability varied significantly depending on the location and the number of rooms in the apartment:

One-room apartments: Mirabad – -1.7% (53% in February 2024); Bektemir – 54.3% (46.8% in February 2024).

Two-room apartments: Uchtepa – 2.6% (27% in February 2024); Yakkasaray – 15.1% (24.2% in February 2024).

Three-room apartments: Bektemir – -5.5% (33.7% in February 2024); Yakkasaray – 10.4% (22.8% in February 2024).

Four-room apartments: Bektemir – -7.3% (37.9% in February 2024); Chilanzar – 16.5% (19.8% in February 2024).

In February 2024, the potential return from changes in housing and rental prices averaged 16.1% in Yakkasaray, 26.9% in Bektemir, and 15.4% in Chilanzar. However, by January 2025, these figures had dropped to 3%, 2.8%, and 0.3%, respectively.

The stagnation and slight decline in housing prices in Tashkent led to a significant drop in capital gains, with Shaykhontohur decreasing from 35.8% to -0.8% and Yunusabad from 30.4% to -3.4%.

In January 2025, the average annual rental yield stood at 10% in Mirabad (10.4% in February 2024), 9.9% in Mirzo Ulugbek (10.6%), and 9.8% in Shaykhontohur (11.6%).

In districts with relatively lower rental prices, the figures were 8.9% in Almazar (9.4%), 8.9% in Uchtepa (8.6%), and 8.9% in Sergeli (8.4%).

The investment attractiveness of one- and two-room apartments, traditionally considered the most profitable, is also declining. In February 2024, their investment profitability was 35.6% and 30.8%, respectively. However, by January 2025, these figures had dropped to 14.3% and 7.5%.

Similarly, the profitability of three- and four-room apartments also declined sharply, falling to 5.5% (from 33% in February 2024) and 2.9% (from 30.3%), respectively.