The rise in prices for the purchase of real estate has accelerated, while apartment rentals are becoming cheaper.
The housing market in Uzbekistan has experienced a significant surge in activity, with rising purchase prices and a decline in apartment rentals as per the Center for Economic Research and Reforms (CERR), Review.uz reports.
After a two-month decline in demand for residential real estate, the market has once again gained momentum. In April, a total of 20,200 housing purchase and sale contracts were registered. Compared to the previous month, when there was a seasonal downturn, the level of activity decreased by another 3.8%, it still surpasses the activity level recorded in April 2022.
In May, the country witnessed a substantial boost in the housing market, with Uzbeks concluding over 25,000 real estate transactions - for the first time since last August. Demand for housing surged by a quarter and by May 2020, it nearly increased by 39%.
Data indicates that in three out of the past four years, housing transactions increased in April but declined in May. The exception was the year 2020 when a sharp decline in April due to strict lockdown measures was followed by an even sharper increase in May.
Simultaneously, the rise in prices of finished real estate also accelerated. If in March, the price of 1 square meter of secondary housing increased on average by only 0.2%, then in April the growth rate reached 1.7%, and in May it reached 2.5%.
In Tashkent, average prices in the secondary real estate market have skyrocketed by more than 27% over the course of the year. This substantial increase has contributed to the growing demand for housing and the surge in prices.
Conversely, the average cost of renting housing in the capital increased by 8% compared to last May. After an autumn rally since the beginning of this year, rental apartments have fallen in price by approximately 12%.
Among the districts of Tashkent, the Mirabad district remains the “most expensive” for tenants, with an average asking price of $11.8 per square meter per month. It is followed closely by the Shaykhantakhur district ($11.5) and the Yakka-Saray district ($11.3).
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