According to the analysis by the Center for Economic Research and Reforms, there was a significant drop in real estate market activity in Uzbekistan in March following a slight increase in February. Last month, 17.8 thousand real estate transactions were concluded, which is 20% lower than in February.
In the first quarter (January-March), the real estate market saw a slight growth of 0.3% compared to the same period last year, as well as a 3% increase compared to the first quarter of 2022. The regions of Namangan and Fergana saw the largest decrease in activity by 27% and 28%, respectively, while Karakalpakstan experienced a 26% decline.
Tashkent accounted for over 28% of the market, with 5340 concluded property sale contracts, a 20.7% decrease from February. In March, the monthly price growth on the secondary housing market continued to slow down to 0.5% in dollar terms, compared to 0.8% in February and 1.6% in January.
The slowdown in price growth is also observed in Tashkent. While the average prices for secondary housing in the capital increased by 0.2% in March (reaching $1142 per square meter), the growth was 1.6% in February. The highest growth rates were recorded in Bektemir (3.3%), Almazar (1.8%), and Sergeli (1.8%) districts.
Despite this, in annual terms, the cost of secondary housing in Uzbekistan increased on average by 14.1% (compared to 18% in January), and in Tashkent by 14.3% (compared to nearly 20% in January). Significant price increases over the year were observed in Tashkent (24.8%), Bukhara (25.1%), and Khorezm (20.1%) regions.
In March, the average rental cost in Tashkent decreased by 2.2% to $8.6 per square meter. Rental prices remain high in Shaykhantakhur, Yakkasaray, and Mirabad districts, where the average rent is $10.6 per square meter. Relatively affordable rentals can be found in Uchtepa, Sergeli, and Bektemir districts at around $6.7 per square meter.
In annual terms (as of March 2023), the rental prices in Tashkent decreased on average by 5.2%. The most significant price drops were seen in Yashnabad (-10.3%), Mirabad (-10.9%), and Yakkasaray (-13.3%) districts.
In conclusion, efforts are being made to increase housing supply to prevent further price hikes. The President instructed regional governors to allocate additional non-agricultural lands for auctions to build multi-story buildings and designated 60 hectares in Tashkent for this purpose.
