Uzbekistan sees sharp rise in property deals and mortgage lending

Uzbekistan's real estate market recorded strong growth in the first quarter of 2026, with property transactions rising by nearly 50%, mortgage lending expanding, housing prices accelerating and construction activity remaining robust.

Photo: KUN.UZ

The Central Bank attributed the market's strong performance to sustained economic activity and resilient demand for housing. Higher mortgage lending, rising real household incomes, and continued investment and construction activity also contributed to the sector's expansion.

Between January and March, 110,100 real estate purchase and sale transactions were registered across the country, up 48.4% compared with the same period last year. The sharpest increase was recorded in March.

Tashkent posted one of the strongest gains, with the number of transactions rising by 64% year-on-year. Significant growth was also reported in Syrdarya region, where transactions increased by 67%, followed by Andijan region at 56% and Navoi region at 52%.

According to the Central Bank, the increase reflects stronger economic activity and ongoing urbanization across the regions.

The regulator also noted that the sharp rise in transactions in March was partly driven by the introduction of a mandatory escrow system for real estate transactions, which took effect on April 1, 2026. Ahead of the new rules, many market participants rushed to finalize purchase agreements.

Mortgage lending also continued to expand. Banks issued UZS 5.7 trillion in mortgage loans during the first quarter, an increase of 29% compared with the same period a year earlier. Over the same period, real household incomes rose by 7.8%.

Construction activity remained strong as well. A total of 3.3 million square meters of housing was commissioned during the quarter, up 6.6% year-on-year. The growth was driven primarily by the construction of individual homes, while investment in the construction sector also increased.

The buoyant market was accompanied by faster housing price growth. In March, prices in the primary housing market rose by 1.8% in Uzbek soum terms and by 8.1% in U.S. dollar terms compared with a year earlier. In the secondary market, prices increased by 3% in Uzbek soum terms and by 9.4% in U.S. dollar terms.